Citizens' Advice Deals With Debts

Credit cards, personal loans and bank loans are foremost in the work of a government-backed debt advice service.

At this 'fag-end' of the year - when pre-Christmas excesses begin to bite on finances - debt advice funded by the Department of Enterprise, Trade and Investment is said to be helping the most vulnerable in Northern Ireland society.

That was one of the findings from an independent report, by PSC Management, based on the debt advice provided by the Citizens Advice Bureau (CAB) to just under 6,000 people over the last four years.

Northern Ireland Enterprise Minister Arlene Foster (pictured) welcomed the report, at its launch by the CAB in Stormont.

"CAB's Annual Report shows that the 'Dealing with Debt' service provided advice to approximately 2,000 new clients in 2007/08 with an average of over 165 new clients per month," she said, explaining that the amount of new debt dealt with during the year was nearly £14 million.

"Almost 70% of the total debt was made up of the three mainstream forms of credit – namely credit cards, personal loans and bank loans. This mirrors the situation in 2006/07," she continued.

"The independent analysis of the debt advice, funded by my Department and provided by Citizens Advice, concluded that the service is 'helping very vulnerable people'.

"It indicated that more than 50% of those who accessed the debt advice service were on means-tested benefits.

"It is reassuring to know that the debt advice service is reaching those in greatest need," she said.

The Minister also acknowledged the CAB's latest Dealing with Debt Annual Report, which was launched at Parliament Buildings, and showed the level of increased demand on the service over the past two years.

"From 1 April this year, the provision from my Department for face-to-face debt advice will double for the next two years to £800,000 per annum and £200,000 per annum funding has been provided for a telephone debt advice service.

"This will help people to take well directed steps to regain control of their own financial affairs and will reduce demand on the face to face advice service," she insisted.

The Minister also vowed to continue to put pressure on the banks to ease the debt difficulties being faced by many.

"I have been pressing and will continue to press the local banks to play their part in doing more to help people in debt," she revealed.

Meanwhile, it has emerged that people in Londonderry have a collective debt of £5.5m.

According to the Citizens Advice Bureau report, the economic downturn had prompted more people to seek help with their debts.

The CAB office in the city is the busiest in Northern Ireland, with Rosemary McCormack from the CAB in Derry saying that high unemployment levels helped push up debt.

(BMcC)