Debt problems, employment and benefits enquiries up at CAB

The number of debt problems, employment and benefits related enquiries picked up by CAB (Citizens Advice Bureaux) has risen over the last year.

Perhaps not unsurprisingly the biggest rise in enquiries related to debt problems with nearly 2 million new debt related issues advised on, up 11% on the previous year.

There was a sharp rise in debt problems raised between Jan and Mar 2009 with a 21% increase in volume compared to the previous year.

Over the year there was also a 114% increase in the number of enquiries relating to redundancy, up from nearly 39,000 in 2007/08 to over 83,000.

Other increases include

• 61% relating to Job Seekers Allowance
• 49% relating to mortgage and secured loan arrears
• 24% relating to bankruptcy
• 19% relating to fuel debt
• 15% relating to Council Tax arrears

Whilst debt problems are arising due to lack of income, over-commitment, illness or disability and job loss, other factors such as irresponsible lending, poor financial skills and increases in the cost of living are also playing a significant part.

CAB Chief Executive David Harker, said, ‘These new figures show the human impact of the recession as more people are coming to the Citizens Advice service for help. In particular we are seeing an enormous rise in the number of people turning to us for help because they have lost their job, or are struggling with debts or having problems keeping up with their mortgages.’

He added ‘A recent funding boost has enabled us to see more clients, and train more advisers but we are expecting to see many more people struggling with severe debt and related problems as the recession continues to take its toll.’

With debt an ever increasing problem the sooner alarm bells are triggered and action taken to address the problem the better.

Debt doesn’t go away by itself and if left to grow it can lead to further serious problems.

As well as the CAB to turn to, there are specialist debt companies who can offer debt advice.