Tagged: personal loans

South Tyneside’s ‘staggering’ debt figures – and for some the only way out is suicide

Cash-strapped South Tyneside has the second-highest level of personal debt in England, a shock new report reveals.

Statistics show that 607 clients visited the borough’s Citizens Advice Bureau (CAB) between July and September last year, with debt-related concerns.

Concern over debt now accounts for a staggering 42 per cent of that bureau’s workload.

A new national CAB report also reveals that South Tyneside has the fourth-highest level of personal debt in England and Wales.

However, when two Welsh authorities are taken out of the equation, it emerges as the second worst debt-hit area in England – just behind Stoke-on-Trent.

 Ian Thompson, chief executive of South Tyneside CAB, based at the Edinburgh Buildings in South Shields, revealed that priority debt, such as rent and Council Tax, had spiralled in recent years.

Meanwhile, advice workers are expecting a further surge in demand for the service this month as borough residents begin to count the cost of Christmas spending.

Mr Thompson revealed that debt-related problems are so great that some clients in the past have committed suicide as an escape from them.

The seriousness of the situation has led him to write a letter to every elected member on South Tyneside Council, outlining the situation and his concerns.

Mr Thompson said:

“We know there is an awful lot of debt in the borough.

“Forty two per cent of our work is working with clients with debt problems.

“That’s a staggering figure when you consider that we deal with a whole range of issues, ranging from employment to housing and much more besides.

“The sort of debt we are encountering has changed during my time with the bureau, from credit card debt and to priority debts, such as Council Tax arrears and rent arrears.

“These are life-changing, priority debts which can lead to people losing the roof over their heads.

“Unmanageable debt causes untold misery and can require the intervention of GPs for the treatment of depression.

“We have also had, as an extreme example, clients committing suicide because of the pressures they are under.

“From mid-January we are expecting a surge in the need for debt-related advice. Prior to Christmas, people tend not to think too much about debt – then the bills and credit card demands start to arrive.”

Top of CAB’s personal debt chart for England and Wales are two Welsh authorities – Denbighshire and Merthyr Tydfil.

In the North East the other worst-hit authorities are Darlington (5th), North Tyneside (8th), Gateshead (12th) and Middlesbrough (13th).

Source – Shields Gazette,  15 Jan 2015

 

Hartlepool residents rack up £7.5m debt mountain

Hundreds of people in Hartlepool have been forced to plead for help after racking up personal debts worth £7.5m in just a year.

 Shocking new figures reveal Hartlepool Citizens’ Advice Bureau supported 1,500 people with debt and money advice over a 12-month period – with the average debt a staggering £16,000.

Worried officials at the Park Road-based CAB say they are very concerned with the high level of personal debt their clients have, some of which is more than £100,000.

Not everyone in money trouble seeks help or advice from the CAB either so the £7.5m figure – which is similar to previous years – is likely to be even higher.

Personal debt includes everything from credit cards, personal loans, pay-day loans, mortgage and rent arrears, council tax arrears, catalogue debts and bank overdrafts.

The figures relate to the period between April 1, 2013 and March 31, 2014. In 2012, the figure was around £8m and worried officials say there has been no “let-up”.

Joe Michna, CAB manager, said: “There has been no let up or reduction in the number of people contacting us with debt related problems.

“The debt levels, given that they are average figures, are concerning.

“While the average debt may be £16,000 excluding mortgages, some clients have debts of well over £50,000 when they contact us.

“We deal with clients who have personal debts of everything from a few thousand through to £100,000.”

Officials say the golden rule for those experiencing money trouble is to seek help or advice early.

The CAB offers two services, a Debt Advice Service and a Money Advice Service, which offers help and support from everything from financial planning to budgeting.

CAB staff aim to re-arrange and improve debt-ridden clients’ financial affairs by gathering information on a client’s indebtedness, confirming household income, alerting clients to other potential sources of income, and identifying priority debts.

Once a full and complete picture of a client’s financial situation has been established, the CAB team can help to identify the most appropriate option for dealing with the particular client circumstances which include self-help support packages, negotiations with client creditors and bankruptcy applications.

The debt and money advice services gave advice and assistance to a combined 1,500 clients.

Mr Michna added: “The golden rule for people who have gotten themselves into debt is to seek advice early.

“We are fortunate in that we can offer two services to local people – a full debt advice service and also a money advice service.

“The money advice service can offer advice on budgeting, financial planning and income maximisation.

“We then have our full debt advice service which offers advice and assistance with debt relief orders, bankruptcy and individual voluntary arrangements as well arranging repayment plans with creditors.”

 

Source –  Hartlepool Mail,  16 July 2014