More households reporting debt problems

According to Legal & General’s MoneyMood survey, the proportion of homes reporting debt and bill problems has risen continuously for the past three years.

“Our research shows that three years ago the number of households with some money left, after paying bills, was much higher than now,” said Legal & General’s director of customer marketing, Claire Stracey:

“This is a concern as it implies that, for some households, their ability to put money into savings, or to spend on non-essentials, has been eroded over the period.”

Partly to blame was the rise in the interest rate, which increased the amount of repayments required on any mortgages and loans linked to it.

Ms Stracey’s comments could prompt many to take advice on becoming debt free as she stated that further financial pressure could be on its way.