New debt figures from Citizens Advice Bureaux in England and Wales saw mortgage arrears problems shoot up by 35% in the first two months of 2008 compared with the same period in 2007. The new figures also reveal continuing increases in problems relating to basic essentials such as gas and electricity, water, telephone and council tax debts.

A survey of almost three-quarters (73%) of all Citizens Advice Bureaux in England and Wales reported that they dealt with 215,000 new debt problems in the first two months of 2008 alone.

The new figures reflect recent increases in the cost of living and suggest a growing number of people are having difficulty paying essential household bills.

Debts relating to credit, store and charge cards still remain the largest category of debt. Unusually for the time of year, credit card debt problems were down by 9%, while problems with overdrafts were up almost 7% on the same period of the previous year.

"It is a worrying trend that our bureaux are reporting a very sharp increase in the number of mortgage arrears problems they are dealing with," said Teresa Perchard, Director of Policy for Citizens Advice.

" These latest figures paint a worrying picture, suggesting a significant number of households are struggling to meet their most basic living costs. The combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people’s finances when they are already stretched to the limit."

March 19th, 2008