The Consumer Credit Counselling Service is urging people to review their budgets following the rise in interest rates to 4.25 percent announced today (May 6).

CCCS, the UK's leading debt charity, has already seen calls to its helplines increase by 25 per cent in the first quarter of this year.

According to CCCS, the people most likely to become over-indebted are those on low to middle incomes with a mortgage which means that they are particularly vulnerable to any increases in variable rate mortgages.

Commenting on the rise, CCCS chairman, Malcolm Hurlston said:

"Any increase in mortgage rates could place a considerable additional burden on those already operating at the limit of their budgets.

"People need to be realistic about what they can afford to pay back. For some a bit of sensible budgeting may be all that is required, others may have more profound problems. People need to be realistic about what they can afford and seek help at the earliest opportunity."

CCCS's research last year showed that nearly half of its existing clients struggled with repayment difficulties for over a year before seeking help. Waiting before seeking help usually exacerbates the situation and the charity is urging anyone who is concerned about their budget to contact the CCCS helpline on 0800 138 1111 or www.cccs.co.uk.