Growing Demand for Debt Advice
Hundreds of thousands of borrowers benefited from debt advice last year, the Department for Business, Enterprise and Regulatory Reform reports.
It seems that over 100,000 people were helped by Government-funded face-to-face debt advice services alone, while many more called the Government-funded debt advice phone service, which has reported a 40% annual increase in the number of calls.
Meanwhile, demand for Business Debtline, the debt advice service for businesses, doubled between autumn 2007 and autumn 2008.
Consumer Affairs Minister Gareth Thomas said: “It is imperative that when people are struggling with debt, they seek assistance as soon as possible. There are a wide range of organisations who provide expert advice and can really make a difference when it comes to resolving debt problems. We have made a firm commitment to support these services so they can continue to help those most in need.”
And Government-funded services are not the only ones offering debt advice. There are many charities and commercial organisations that offer free debt advice – and may be able to provide the professional debt solutions that can help borrowers clear their debts as soon as realistically possible.
Entering 2009, it seems demand for debt help is likely to grow along with the nation’s economic problems. After all, the Council of Mortgage Lenders is predicting 75,000 repossessions; KPMG is expecting 150,000 insolvencies; and the Government has admitted that the recession is likely to be longer and deeper than originally expected.
“With such an uncertain year ahead of us, it’s vital that borrowers seek debt help at the first sign of trouble,” said a debt management expert for Gregory Pennington.
“In general, the longer they leave it, the greater the chance their debts will spiral out of control, especially if something happens to their income. Given the worrying predictions about rising unemployment in the UK, this is a very real consideration for many people – they may be able to afford their debt repayments at the moment, but would they be able to cope with them if their income dropped substantially?”
