Updated: 21/10/2009
Updated: 21/10/2009
In the year to the end of March 2008 debt advisers at Stoke CAB helped people deal with 17,500 debt problems which accounted for 1 in 3 of all problems brought to the bureau.
This figure has risen by 50% in the last 5 years.
“The size of this increase is only to be expected, given what’s happening to the local economy,” said bureau Chief Executive Simon Harris.
“High levels of borrowing, low wages, rising unemployment and a stalled housing market provide a potent mix of factors which have caused the current debt crisis.
“Looking forward into 2008 we anticipate the demand for debt advice rising. Unfortunately demand will almost certainly rise faster than we can increase the number of advisers available to provide this essential help.”
The total amount of debt owed by people using Stoke CAB was £25.9 million in 2007/08.
“That means we helped people deal with half a million pounds worth of debt in each and every week of the year,” Simon added. “Once again that is a phenomenal amount of personal debt”.
The number of people receiving specialist help with complex multiple debt problems increased by 63% from 1,060 to over 1,700.
“This massive increase in numbers demonstrates the huge demand for debt advice that exists within the City, and we were able to meet as much of the demand as we were able, due to additional funding received through the Governments Financial Inclusion Fund.
“As we see no signs of the demand falling, it is essential that both Central and Local Government maintain their investment in face to face debt advice if we are to avert a debt catastrophe,” said Simon Harris.
“A snap-shot profile of our debt enquirers shows that people approaching CAB for debt are poorer, sicker and more vulnerable than the population at large,” he said.
“What is notable, this year, is we have seen an increase in the proportion of debt clients who are private tenants and the proportion of those people who are working and struggling to make ends meet on a very low income.