Calls to debt helplines 'on the up'

24/11/2008

Calls to debt helplines are on the up, as many Britons face their first credit crunch Christmas.

The Consumer Credit Counselling Service (CCCS) handled 9,000 calls from members of the public last week - its busiest week of the year so far, the Observer reports.

Meanwhile, figures cited by the newspaper showed that National Debtline's advisers were called for help 21,000 times over the past month - double the usual rate.

Speaking to the newspaper, Frances Walker at CCCS commented: "Recent anecdotal evidence from callers suggests that people are using credit cards not to go on a big spend this Christmas, but simply to plug the gap today. That's a really troubling sign."

Ms Walker added that the high-profile nature of the crunch and economic downturn would make it "easier" for people to tell their families that they should scale back their Christmas spends.

EuroDebt director Kevin Still said: "These call levels suggest that many people are struggling, but want to do something about their debt problems. It is often the case that something requiring urgent attention, for example missed payments and consequent chasing correspondence, has prompted the call and this may demand a rapid response by the service providers, which can be difficult for the 'not for profit' or volunteer sectors if call volumes have doubled.

"We have seen many credit card issuers raise their interest rates on current balances and new purchases with the effect that card holders simply cannot afford the new minimum payments."

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems,

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