Debts & Loans

Couples are increasingly turning to debt and relationship counselling as the economic crisis puts their finances and marriages under strain, it is claimed.

A survey of town halls has found a sharp rise in demand for advice services in recent months.

In total, 93 per cent of councils said they had seen an increase in demand for debt counselling while 69 per cent had seen more residents seeking housing advice.

Half had seen more people asking for employment advice as the number of jobless reaches 2million.

The poll of 155 local authorities across England by the Local Government Association, the umbrella body that represents all town halls, also found that 17 per cent have experienced an increase in demand for relationship counselling recently.

It comes after economists warned that the looming recession would lead to thousands more married couples splitting up, claiming that a 10 per cent drop in property prices would trigger a 5 per cent increase in the divorce rate.

The chairman of the Local Government Association, Cllr Margaret Eaton, said: "These figures demonstrate the effects the credit crunch and the recession are having on families across the country.

"From fears about debt to cash worries putting strains on relationships, people are feeling the pinch."

She added that councils are trying to help residents cope by offering support to the unemployed and keeping small businesses afloat.

"The economic recession will touch almost everyone in the UK in some shape or form. Councils are at the centre of helping people, businesses and other groups through the tough economic times ahead. When things go wrong, councils step in, both to help kick-start the economy when it hits rock bottom and to provide a safety net for people in need."