New year debt warnings

From Monday January 2nd, most train operators will increase season ticket and saver ticket prices by 4.3 per cent. This is one per cent above inflation, but other fares are set to rise by up to 7.3 per cent.

In addition, council tax bills in England are to rise by up to five per cent, adding to consumer debt burden in 2007.

Yet with Londoners footing the bill for the 2012 Olympics, there is to be no government cap on council tax rates, meaning that the increase could be greater, making it even more important that people start debt management plans now.

For instance, a London all-zones travelcard currently costs £1,640, but this will rise to £1,720 from January, adding to the amount that people have to find to pay to get to work.

“While no-one likes to pay more for their travel, we need the revenue to pay for the ongoing improvements to the railways that passengers expect – and overall satisfaction levels are now at an all time high of 80 per cent,” said George Muir, director general of the Association of Train Operating Companies (Atoc), defending the rise.