A recent rise in unemployment has made it more difficult for people to address their debt management problems, it has been claimed.

Figures from the Consumer Credit Counselling Service (CCCS) found people have to spend more than they earn each month, reducing the amount they have to repay debts.

It suggests that the average amount a couple can use to repay their debts has fallen from £197 to £114, which is attributed to the rising rate of unemployment.

CCCS chairman Malcolm Hurston said: "We already have evidence that this traditionally lagging indicator of financial wellbeing is making it increasingly difficult for our clients to repay their debts.

"We would expect this situation to get worse, certainly for the rest of this year."

The latest figures show the employment rate in the UK now stands at 72.2 per cent in the three months leading up to June, marking a 0.9 per cent fall compared to the previous quarter.

During this period, 28.93 million people were in employment, down 573,000 on the second quarter of last year.