(Ahlul Bayt News Agency) - The research has found that over three million British families are either three months in arrears with debt repayments or vulnerable to some kind of debt action like insolvency. An additional three million households are in stark financial conditions as they face sharp rises in household bills.
The lowest-income families faced a 6% decrease in their income from 2005 to 2010. Energy costs, which are on the rise, will adversely affect households already in trouble. Electricity bills are expected to increase by 14.5% as gas bills will rise by 19.7%.
Moreover, the most adverse impact on British homeowners comes as mortgage interest rates are anticipated to rise. A rate increase of 0.25% would cause someone with a £100,000 repayment loan to pay £14 a month more.
Chairman of the CCCS, Lord Stevenson, acknowledged that the sample population who took part in the research was representative of the UK population and expressed concerns over the financial situation of most people in the UK.
"CCCS was contacted by almost 418,000 people last year, and our data reveals the stark realities faced by many decent, ordinary people who struggle to make ends meet in these difficult economic times. It is important that the complexities of their vulnerability are understood and addressed by government as well as the financial and charitable sectors," he said.
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