Consumers ‘need more advice’ about debt management

Citizens Advice has called for the self-help debt system to be reviewed following its investigation into the sector.

The self-help system is aimed at helping to empower people to manage their own debts, be involved in negotiations and become debt free.

However Citizens Advice has revealed that out of the 45 per cent of people surveyed who wanted to take control of their own debt management, 60 per cent had applications for the restructuring of repayments with creditors rejected.

Citizens Advice chief executive David Harker stated that there are an increasing number of people in England and Wales with debt problems.

“The current credit crunch and rising food and fuel costs are likely to result in more people needing help managing their finances,” he added.

Meanwhile, consumers in debt were recently advised by the Consumer Credit Counselling Service to stick to a budget plan.

By Rosie Park