Low Interest Credit Cards

The charity said that it had noticed many more middle-class families – people who owned their own businesses and home owners – approaching them for advice.

In total the charity, which is mostly funded by public money, dealt with 7.1 million cases, more than a million extra on the previous year’s tally of 6 million. It said that 2.1 million individuals had received advice from their local bureaux in total, up from 1.9 million the year before.

One area that saw the biggest increase was fuel debts. In total the charity dealt with 110,000 cases where someone could not afford to pay their gas or electricity bill – nearly as many people who could not afford to pay their mortgage.

Teresa Perchard, director of policy at the charity, said: “Some groups such as pensioners have received extra help through winter fuel payments. But people of working age but on low income have found it very difficult to pay these bills.” The average gas and electricity bill only fell by about 5 per cent last year and is still £1,200 on average.

The charity said that though the recession was officially over, it feared it could see just as large an increase in consumers asking for help this year if interest rates start to increase from their record low of 0.5 per cent.

Ms Perchard said: “Our fear is that if interest rates rise significantly there could be a large number of consumers, who up until this moment have kept their head above water, but who will not be able to cope with an increase in their mortgage or credit card debts.”

The largest category for problems remains credit cards, with 422,835 issues being dealt with during the twelve months, up 11 per cent on the year before.

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