Urgent Loan Debt Advice Increases
Although the recent recession is officially over and the financial situation should, in theory, be getting easier for many individuals, the number of people seeking advice for urgent and serious debts on their personal loans and other commitments is increasing dramatically.
The recent reviews of welfare state benefits, such as sickness and disability benefits, have left many people who are claiming these benefits financially worse off and many a re beginning to struggle to keep up with their personal loan repayments, as well as more important commitments such as gas and electric bills and rent, or home owner loan repayments.
The news comes from the Citizen’s Advice Bureau (CAB), who have seen the number of calls they receive regarding benefits and debts increase by around 6 per cent between April and June this year, compared with the same period twelve months ago.
Although CAB say that there has been a slight reduction in the number of people seeking advice with regard to minor personal loan and credit card arrears, there has been an increase in the number of cases where a person’s loan debts have been more serious.
There has also been a dramatic increase in debts in areas other than loans, which could have a greater impact for the individual, such as utility bill arrears and rent or home owner loan arrears, which could eventually see an individual lose their home.
Gillian Guy of CAB said “With so many flaws in the current system we predict the number of people who come to us for advice will only continue to increase. Demand for CAB services is at a record level and although the recession is technically over, the effects will be felt among households for a long time to come.”
