Helplines run hot with worried debtors

Helplines run hot with worried debtors

Charities have seen a surge in the number of people seeking advice for debt problems, it was reported today.

The Consumer Credit Counselling Service said it had received 33% more calls in the first quarter of 2007 compared with the same period in 2006. A total of 86,990 calls were made to its helpline in the first three months of the year.

Citizens Advice also reported a sharp increase in the number of people coming to its bureaux with worries over mortgage arrears and repossession orders.

Reports by counsellors showed an increase in the number of people failing to keep up with monthly repayments, raising concern that rising interest rates could be causing financially overstretched households to struggle further.

The period following Christmas traditionally brings an increase in the number of people seeking help, but the charities said rising household bills and mortgage repayments had made the situation all the more difficult for many families.

James Ketchell, head of research at CCCS, said: "Increased media attention on debt issues and increased advertising by IVA (individual voluntary arrangements) and commercial debt management firms has prompted many to take action on their debt situation earlier.

"Additionally, higher mortgage repayments and utility bills have led to more people reassessing their financial situation and seeking help where necessary.

"At CCCS we have increased capacity to ensure that all those.....continued below

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seeking impartial and free debt advice are able to receive it. For those in debt or who have worries about their financial situation, it is important to receive advice sooner rather than later."

But despite the fact that people are seeking help sooner, Moira Haynes, spokeswoman for Citizens Advice, said: "We do have concerns. From the reports we are getting we are seeing an increasing number of people with problems connected to mortgage arrears."

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