Debt has now become a major worry for Britons, with fears over payment defaults rising by 44% in three months - from 18% in October to 26% in January. The latest in a series of quarterly debt reports from the CPP Group, a leading provider of security products including Europe's largest card payment protection service, reveals that mortgage repayments continue to top the list of financial worries for a third of the population (33%).

Many commentators have suggested that the current levels of consumer debt are sustainable while unemployment and interest rates remain low. Yet the CPP Group's findings reveal that people are becoming increasingly nervous about their outgoings and their ability to manage their debts. This research follows a Financial Services Authority report suggesting levels of personal debt are rising quicker than average salaries.

The CPP Group asked a GB representative sample of 2000 what they most feared not being able to repay in the next three months.

Key findings:

• Fears amongst young homeowners (under 25s) about meeting mortgage repayments have increased sharply, almost doubling in three months - from 8% in October to 15% in January. This suggests that at a time when house prices continue to soar, many young people may have taken out a larger mortgage than they feel comfortable with in order to get a first step on the property ladder and are concerned of meeting repayments should base rate start to rise.
• Mortgage fears for women have risen from 28% to 33% in three months, yet have fallen amongst men - from 38% to 34% - over the same period. These fears continue to be highest amongst the 35-44 age group where half (50%) fear meeting this repayment.
• In contrast, those aged over 55 years continue to fear most for their council tax payments (45%).
• Concerns about overdraft payments for young people have almost halved in three months - just over one in ten (11%) say they worry about this outgoing compared to one in five in October (20%).

Regionally:

• Paying their Council Tax is a bigger worry for Scots than paying their mortgage (32% vs. 29%).
• People in the South are twenty times more likely than those in the North West to fret over their credit card bills (20% vs. 1%).
• Half of all those in Yorkshire (50%) are anxious about their mortgage repayments compared to less than a quarter of those living in the South (24%), whose mortgage fears have almost halved since October.
• Mortgage worries amongst Londoners have dramatically slipped from 45% in October to 28% in January.

Top financial worries:

• Mortgage (33%)
• Council tax (18%)
• Utility bills (15%)
• Credit card (11%)
• Bank overdraft (7%)
• Personal loan (7%)
• Money lent by friends/family (6%)
• Pension (1%)
• Store card (1%)

Commenting on the findings, Julia Procter from dma, a company within the CPP Group, said:

"A gloomy stockmarket, uncertainty over house prices and the first credit card bills after Christmas are the backdrop to a feeling of economic insecurity.”

“The availability of instant credit, often combined with low interest rates, also means it can be tempting for people to run up debts on the 'never never' that they're just not able to service.”

“Now, more than ever, people must take extra care when managing their money, and talk to someone if they feel they are running into difficulties."