Debt already the agenda for 2008

Many people in the UK experiencing debt problems in the tail end of 2007 are expected to have to pay the price in 2008, according to government figures.

Over £22 billion of arrears have been handed over to debt collectors this year, with the figure expected to rise to somewhere in the region of £24 billion for 2008.

Interest rate hikes from the Bank of England have left many consumers facing a difficult end to 2007, with things not looking much brighter for the new year.

A spokesperson for the CSA commented, "Over-indebtedness will be accelerated by more fixed-rate mortgages becoming variable at higher rates and access to new credit becoming harder."