Credit cards, store and charge cards and unsecured loans were among the most frequent causes of debt problems for our clients in 2017, only slightly lower than council tax and rent arrears.
The evidence fits with a new paper, Problem debt and low income households, by the respected Institute of Fiscal Studies.
The authors warn against alarmism. Most debts for most of the population are currently manageable.
But among the poorest households I in 4 has problem debt or is spending more than a quarter of their income on repayments.
Gillian Guy, Citizens Advice national Chief Executive, is calling for the Financial Conduct Authority to cap all forms of high-cost credit so no one pays back more than twice what they borrowed.
“People can be pushed further into debt by irresponsible lending practices such as credit card companies handing people credit limit rises they’ve not asked for, or rent-to-own and other high-cost creditors that lend to people who can’t afford the repayments.” Full statement