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Debtors 'may struggle due to tax rises and benefit cuts'

28-06-10, 03:50 in Eliminate debt
Debtors 'may struggle due to tax rises and benefit cuts'
People who are struggling to overcome financial problems, which may include credit card debt, might come under even further pressure in the future because of government benefit cutbacks, one expert has pointed out.

However, according to the Consumer Credit Counselling Service (CCCS) spokesperson, it is not just benefit reductions that may have an impact on the finances of consumers.

Tax rises could also prove to be problematic, he feels, with a VAT hike on the way next year.

"People with debt problems may struggle as the measures will reduce the money people have left each month to pay back what they owe," the spokesperson said.

He went on to say that last year proved difficult for some consumers due to factors such as pay cuts and job losses.

Meanwhile, last week the CCCS suggested that it has recently had to offer advice to a number of struggling rental property occupants, regarding the issue of eviction.

Posted by Tom Burroughs.ADNFCR-2660-ID-19861109-ADNFCR

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