People are finding it increasingly difficult to get out of debt despite historically low interest rates and low unemployment, a charity warned today.

The Consumer Credit Counselling Service (CCCS) said there had been a ten per cent increase in the number of people on debt repayment plans having problems sticking to them during the three months to the end of June, compared with the same period the previous year.

At the same time the group said almost half of those who came to it for help had waited for at least a year before facing up to their problems.

CCCS chairman Malcolm Hurlston said: "If people who are already in difficulty find life is getting harder despite a benign economy, it does not bode well for the future when there is a turn for the worse."

The research also found the average debt of people entering one of the plans, under which interest is frozen in exchange for people paying back a set amount each month, was £24,460.

Monday September 1, 2003