The Bank of England has issued a debt warning in its latest quarterly economic bulletin, with the survey showing that personal incomes are under pressure from the continuing economic slowdown.
According to the data release, one in ten households are in "constant" difficulties with paying their essential costs, with a majority saying that their income is more squeezed now then it was a year ago. Across 2008, credit conditions have remained tight, unemployment has risen to almost two million and repossessions are also on the up, as more and more people fall into negative equity.
The Bank of England found that the number of those who are struggling to pay their accommodation costs, for example, has increased from nine percent to 13 percent over the past 12 months. Additionally, the number of homes delaying their spending due to fears over credit increased from 12 percent to 16 percent.
In its bulletin, the Bank of England said: "Many households thought that credit had become harder to access over the course of the year, which had caused some to lower their spending. And more households were finding their debt to be a burden to them."
The Bank of England surveyed over 2,500 households in the UK while compiling its report.
