More Brits to start New Year in debt
Published: 5 January 2010 By MoneyHighStreet Staff Leave a Comment
Many Brits will start the New Near facing serious debt. That was the findings of a study made by Citizens’ Advice Shropshire (CAS), a registered charity providing free debt advice.
At the same time, the UK debt charity Debt Advice Foundation observed that many individuals who are already facing serious money issues, often wait until the New Year to seek professional financial advice.
But this could be a wrong decision as the number of people seeking advice usually double in number every January, the foundation said.
Debt Advice cited statistics from Shropshire where over 320 cases of people declared bankrupt were reported last year. Shropshire also posted a record level of personal insolvency in the UK during 2009.
Financial advisers predict that requests for debt advice are expected to rise in the early months of 2010 with so many people facing money problems and struggling to keep up with household expenses and credit obligations.
The CAS has been running a Court Desk Duty Scheme to address the jump in the number of repossession and eviction cases in the county. The Court Desk Duty Scheme provides advice to the public when they attend court for either repossession or eviction cases.
CAS’ operations manager Jackie Jeffrey said, “Many people do not seek advice before going to court and many feel that there is no hope and are resigned to losing their homes. Some home owners do not even attend the court hearing. However, there are options available and people should really seek independent advice and attend the hearing.”
For those who are faced with mortgage concerns, they can attend the Mortgage Worries workshops where they will be given advice on how to face payments arrears, and information on what to do next and how to discuss options with their mortgage providers.
Jeffrey added, “We have seen more clients in acute distress, whose situation needs a fast response and sensitive handling. Others have more complex problems which need a holistic approach across several legal subject areas.”
