There is an increasing number of people seeking debt advice, Citizens Advice has told money advisors attending a summit on the matter.
The claim has been made by director of policy for the charity Teresa Perchard at the second annual Citizens Advice Money Conference, which has been held to discuss the effects the impact the current economic conditions are likely to have on the debt advice sector.
“Bureaux are already dealing with increasing demand for specialist money advice, and increased enquiries on mortgage and secured loan arrears and fuel debts,” she explained, adding that it is “crucial” to government and money lenders respond to the issue.
She also offered advice to those struggling with debt to seek advice as soon as possible.
Not doing so could result in banks being reluctant to provide credit, meaning people may become ‘financial untouchables’ – or FUNTS – due to the difficulties they face when trying to obtain finance.
The charity recently called for a review of the self-help debt system, due to the high number of rejections for those looking to restructure their payments.
By Tom Musk