Debt management: Trustworthy debt advice 'in demand'

04/02/2010

More trustworthy advice for people who need help with debt management is needed in the UK, according to a National Audit Office (NAO) report.

The report, carried out for the Department of Business, Innovation and Skills, looked into how best to help over-indebted consumers.

Amyas Morse, head of the NAO, said: "Many people are able to manage their debt, but for some the problems may seem insurmountable. When that is the case, people need good advice which they can trust and which is accessible."

Between July 2008 and July 2009, there was a 28 per cent increase in the number of people contacting debt advice providers.

The report found that in many cases this led to demand for debt help exceeded capacity.

In order to help those struggling with debt, the report called for debt advice providers, in both the private and public sector, to work together to combat the affects of the recession.

Director of EuroDebt Kevin Still commented: "We need to look beyond the initial debt advice, which is generally provided free whether from the public or private sector.

"The government cash distribution has been focused on initial face-to-face meetings, the most expensive type of debt advice, which costs an average of £265 per person. Waiting times in the public sector can be long for an appointment."

He added: "EuroDebt's approach is based on confidential face-to-face meeting, usually in your home at a time to suit you, and then (if applicable) a fully managed Debt Management Plan (DMP) with a Personal Case Manager."

Posted by Fiona Smith

Tags; Income Worries and Debt,

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