Get advice for debts, Brits told

12/10/2009

Debt help UK firms joined forces today to highlight the importance of getting expert advice in order to solve debt problems.

Advice UK, Age Concern and Help the Aged, Citizens Advice, the Law Centres Federation and Youth Access said that debtors should try to get money advice as quickly as possible, in order to stop the problems from worsening.

The firms also highlighted the recession - which has led to rising unemployment, loan defaults and home repossessions - as a major factor in the increasing numbers of people seeking their help over recent months.

David Harker, chief executive of Citizens Advice, said: "Even people at crisis point - for example people facing a court hearing for repossession of their home - can find their situation swiftly improved if they seek advice."

Steve Johnson, chief executive of AdviceUK, added: "Skilled advisers know how to claim or negotiate extra time or resources even at the eleventh hour."

Kevin Still, EuroDebt director, added: "Many of the advice agencies have confirmed record level of debt enquiries as the recession has progressed. This may be in part due to people listening to the government, lenders and debt advice providers to seek help before debt problems become so serious that your home and assets may be put at risk. It is also a reflection of the deferred effect of the recession where job losses, insolvencies and re-possessions continue to rise after we have technically turned the corner into a 'recovery'.

"A flat property market, with restricted lending, rising costs and a fragile economy are likely to mean that traditional methods of tackling household debt are unlikely to be available and that a long-term non-borrowing solution is required that may take upwards of five years to see through. For those people with some disposable income who may struggle to self-manage their affairs then a Debt Management Plan or an IVA may be a viable debt solution."

The report was released to mark the beginning of Advice Week 2009, which runs until October 18th.

Tags; Income Worries and Debt, Credit Card Lifestyle,

Regional Debt Advice; Debt Advice Leven,

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