Benefits Sustaining Debt Laden Families

Social security benefits are keeping many debt laden families afloat, but serious consequences could result when some are withdrawn, a debt charity is warning.

The Consumer Credit Counselling Service (CCCS) has found that 55 per cent of its clients receive some benefits or tax credits, underlying the important of benefits to low to middle income households.

In general, benefits account for a third of the income of those seeking the charity’s free debt help.

Many changes to the benefits system have been announced by the government in an attempt to reduce the costs to the state of long term benefit payments, but these changes are likely to have a high impact on debt burdened families.

“While I understand the focus of the government’s benefit changes is on those receiving them in the long-term, they need to understand the impact on those who, often as a result of a life change such as redundancy or relationship breakdown, depend on them in the short term.”

“This is particularly the case for low-to-middle earners who are vulnerable to income shocks.”, said Delroy Corinaldi, CCCS External Affairs Director.

It can be difficult for a family to make ends meet, particularly if they have fallen into a spiral of increasing debts. The sudden withdrawal or reduction in a key benefit may tip that household over the edge.

This is where debt charities like the CCCS can help. It aims to help the “can’t pays” rather than the “won’t pays” with their debt problems and aims to help its clients pay back what they owe, in a realistic time scale and manner that is suited to each individual’s situation.

The CCCS is available on 0800 138 1111 Monday to Friday between 8am and 8pm and via its debt remedy website.