Increasing number of people seeking debt advice

Recent figures have shown that amidst the turmoil and chaos that has been gripping the financial markets over recent months an increasing number of consumers have been turning to industry professional in order to seek advice about their debts.

The figures from the Citizen’s Advice Bureau, and officials have said that the number of people seeking debt advice has surged by around one third over the past year, reflecting the financial problems that many consumers are now facing. Over the past few months officials have seen figures increase even more sharply, as people try and weather the effects of the global credit crunch.

An official from the CAB said: “While we are pleased to see the number of consumer credit problems going down, the increase in the number of inquiries about basic essentials is worrying. These figures show how the current economic situation is hitting vulnerable and low-income households the hardest.”

He advised consumers to talk to their lenders if they were having problems with repayments, especially with mortgages. He added: “All creditors should treat borrowers in arrears fairly and sympathetically, negotiate with borrowers in trouble and only use court action for mortgage arrears as a last resort.”