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Debt problems relating to credit cards have decreased by nine per cent although issues with overdrafts have increased a survey by a leading charity has revealed.

The Citizens Advice Bureaux collected information from 73 per cent of its offices. Statistics show that problems with debt number 215,000 in January and February of this year.

Inquiries about mortgage worries increased by 35 per cent compared to the first two months of 2007.

The report highlighted difficulties people have managing their day-to-day living expenses.

Teresa Perchard, director of policy for Citizens Advice, said: "The combination of big increases in household bills, especially fuel, and rising housing costs is putting additional pressure on people's finances when they are already stretched to the limit."

The charity confirmed that approximately one in three of the issues it deals with concern debt.

Richmond-upon-Thames was found to be the most cash-strapped area closely followed by Putney, Kingston-upon-Thames, Windsor and Wandsworth.

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