‘Number of people seeking debt advice rising sharply’
October 9, 2007 at 9:49 am
Over the past few months studies have shown that debt is becoming an increasingly serious issue in the UK, with many people having to seek help to try and bring their finances back under control. Though it could be said that a comfortable amount of debt is not a matter for concern, it is still clear from recent figures that many are troubled by their finances. In fact, the Citizens Advice Bureau (CAB) has said that the number of people seeking debt advice has hit record levels and debt is now the biggest problem they deal with.
The figures from the CAB are indeed startling; apparently the offices receive 6,600 debt enquiries a day, and 1.7 million people have asked for debt counselling in the last year alone.
The types of problems people have are numerous. There has been, for example, an increase in both bankruptcy and mortgage-related concerns. Most common, however, are those problems resulting from an inability to pay credit and store card bills and other unsecured loans. There have also been many problems surrounding the payment of household bills such as gas and electricity.
The demand for debt advice is actually so high that the CAB claim they are finding it difficult to keep up with all the phone calls and visits, and urgently need volunteers to assist them with all the enquiries. They have already taken on more than 400 new money advisors but it is still a challenge.
Debt is increasing for many reasons. Not only has the cost of borrowing taken its toll on many households, but the consumer credit boom of the last decade has made it easy to borrow money, and therefore tempting for people to casually accumulate more and more debt. As CAB’s chief executive David Harker explains, “These figures are worrying evidence that while many have enjoyed the benefits of the credit boom, a large and growing number of people continue to pay the price.”
The CAB also blames many of the problems on banks and other financial providers, as many are not only unhelpful but also make the problems worse for those suffering from debt, by handing out money too easily to those who will not be able to pay them back, and offering packages that are not actually beneficial in the long-run. The CAB reports that many people don’t hide the fact they are on low incomes, yet are still lent thousands of pounds which they may struggle to repay over a lifetime.
Given how busy the CAB is, it is useful for those who are struggling with debt to be aware of some basic, provisional ways to manage their finances. For example, experts advise that one should be wary of borrowing more money and that debt problems cannot be ignored. It is also useful to make sure you are claiming all the benefits that you are entitled to in order to maximise your income. For those who are not sure whether their debt is really a problem, the BBC’s Debt Test may be a good starting point.
I am able to reduce my student debt when I sold my essays online. Because of this, I am able to have more time on my studies since I am getting the money I need.