Number struggling to manage debt increases

The number of people struggling with debt has increased by 46 per cent, according to figures by the Citizens Advice Bureaux.

Enquiries to the charity have risen by 82 per cent since 2005/6 and the majority of those with fuel problems are of working age.

David Harker, chief executive of Citizens Advice said: "We are already seeing large increases in the number of people in fuel debt and it is not yet winter. With fuel prices remaining at historically high levels it is essential that people get all the help that is available."

Figures by Credit Action show that Brits are already struggling to get credit with consumer credit falling by 0.7 per cent while total UK personal debt at the end of August 2009 stood at £1,457 billion.

Brits who default on their debts run the risk of getting a bad credit score which can affect their ratings, according to Personal Credit Rating, a company which helps people to improve their credit rating.

But transferring balances to a credit card, and settling debts can help to improve a persons' credit score.