A ‘debt noose’ is tightening around households, with families forking out almost a quarter of their disposable income every month on interest alone. The interest burden for the last three months of 2011 reached an average of almost £200 a month, debt charity the Consumer Credit Counselling Service (CCCS) warned in a report released today. The percentage of income spent on debt interest rose by 0.1 per cent from the previous quarter as living costs outstripped wage increases, the Consumer Debt and Money Report said. Older people are increasingly affected by debt problems, it warned, highlighting a rising demand for debt advice from late-stage professionals aged between 45 and 59.

'There has been a gradual rise in counselling demand from this group, with its share rising from 22.8 per cent in 2005 to 31.7 per cent by (the end of) 2011,' the report said. UK households’ determination to pay down their debts has slowed down as disposable income has been swallowed up by high inflation, with expensive petrol, utilities and housing costs and deteriorating employment conditions, the charity said.....Read more here--: Debt noose tightens around households as families pay out £200 a month on interest payments alone