IVA help to be needed by families?
Families are the demographic group most likely to suffer severe debt problems, it has been claimed.
A study by the Consumer Credit Counselling Serv…
Families are the demographic group most likely to suffer severe debt problems, it has been claimed.
A study by the Consumer Credit Counselling Service (CCCS) for its 2010 yearbook has indicated last year actually saw an overall dip in the level of debt per person across the population.
During the course of the 12 months, its clients reported fewer debts, dropping from seven to 5.7, while the average amount owed fell by seven per cent to £22,476.
It also revealed the overall number of calls from people seeking help dropped from half a million in 2009 to 418,000 last year.
Yet at the same time, families were identified as being increasingly vulnerable, with a key reason being the increasing cost of raising a child as essential costs rose by £650 each.
And for those with more than three children the situation is such that they are £45 a month short of the money they need to meet essential costs.
Such families may benefit from individual voluntary arrangements to bring their debts down.
Commenting on this state of affairs, CCCS chairman Lord Stevenson said: “The picture is undoubtedly bleak and it seems likely that many more families, including better-off ones, will be increasingly prone to over-indebtedness in the months ahead.”
Those who may face such problems could include households unable to keep up with their energy bills over the cold months of winter.
A recent uSwitch study found five million households – 19 per cent of the total – have arrears at present, with the average being £126 and the total amounting to £624 million.
By Amy White