Council Tax Debt on the Rise
The main culprit for the average UK citizen with debt problems used to be overspending on credit cards. Spending on credit cards has always been an easy way to fall into debt as many are tempted to spend when they actually cannot afford the repayments.
2015 information from the Citizens Advice Bureau has identified a new culprit for debt problems, something that is essential that we pay otherwise risking a criminal record or even prison, this being council tax. Council tax debt is on the rise. The amount of people that have contacted the CAB for help and advice regarding council tax arrears has risen greatly over the past four years, rent arrears and fuel arrears (Gas and Electric) are also being cited as problem debt areas.
Pippa Lane from the CAB told The Mirror Newspaper:
“Citizens Advice has seen a shift in the kind of debt people have now compared to five years ago.
“People are increasingly struggling to pay their basic costs of living, and falling into debt as a result.”
There was a time when the only people in debt were those that overspent, or had a change in circumstances such as unemployment which left them unable to repay credit cards, loans and store cards. Today problem debt signifies other problems within the UK, such as rise in living costs, benefit cuts and unemployment.