One in three problems is debt related, says CAB

One in three problems seen by the Citizens Advice is now debt related. The CAB is calling on the debt industry to review how it handles debts so more people can help themselves. It has revealed that more than six out 10 repayment plans are thrown out by lenders because they were submitted by the debtors themselves. The CAB wants to encourage more people to be able to sort their own problems out. It says research has shown that nearly half of people with debts would prefer to deal with the issues themselves.

David Harker, chief executive of Citizens Advice, said: "Personal debt in the UK is growing and it now accounts for one in every three problems dealt with by the Citizens Advice Bureaux services in England and Wales.

"As the current credit crunch and rising food and fuel costs are likely to result in more people needing help managing their finances, it's important that those who want to and are able to can negotiate with creditors directly without the risk of being treated unfavourably."