Report reveals financial hardship for families


A report by the Consumer Credit Counselling Service (CCCS) has revealed that many families could be pushed into debt in the coming months.

In its 2010 Statistical Yearbook, the charity said higher rate tax thresholds, lower tax credits and higher interest rates could result in thousands of families facing severe debt problems.

Families with three children or more are likely to be hit the hardest said the organisation. A 2% increase in interest rates would lead to a £300 hike in monthly mortgage payments - crippling some families already struggling with debt.

Rising inflation is also putting pressure on households, while many are faced with the prospect of unemployment as thousands of public sector jobs are lost across the country.

Commenting on its research, CCCS chairman Lord Stevenson, said: “The picture is undoubtedly bleak and it seems likely that many more families, including better-off ones, will be increasingly prone to over-indebtedness in the months ahead.”

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