Debt problems surge as consolidation fails

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Debt problems have increased by 15% in January, compared to a year ago, while 66% of people taking out consolidation loans use them as a "licence to go spending again".

Citizens Advice, the national charity, says a survey of around 230 bureaux in England and Wales revealed they had dealt with more than 83,000 debt problems in January, the equivalent to more than 3,700 debt problem every working day. It says this is a rise of 15% compared to January 2006, with the problems reported showing an increase in issues relating to basic essentials such as fuel and housing costs, along with council tax arrears, telephone debts and water and sewerage costs. In addition, the CAB says debts relating to credit, store and charge cards still remain high, with the su...

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