9th July '08 - CAB Report Increase in Debt Management Plan Advice
The Citizens Advice Bureau in Worthing, West Sussex, has reported an increase in the number of people approaching them with financial difficulties who are looking to come up with an effective debt management plan.
David Chapman, CAB’s manager in Worthing, says that the effects of the credit crunch have seen the situation “dramatically deteriorate in the past few days”.
This is consistent with growing trends for troubled consumers in the area to seek advice. Worthing CAB report that over the past three months there has been a rise of 35% in the numbers of people contacting them seeking debt management plan advice.
Chapman commented, “No client's situation is the same. Many have been struggling for months but the current economic situation, which has seen a huge increase in the average family monthly expenditure, basic food bills, fuel, gas and electric bills and mortgage interest rates, this has been the last straw.
”It is known that many, unable to pay food, mortgage or rent bills, are using credit cards and loans to meet these essential expenditure costs. It is only a matter of time before they also will be overwhelmed by their debts.”
He added that consumers looking to find the right debt management plan for them should be aware that Individual Voluntary Arrangements, although helpful for some, are not suited to everybody.
He said, “Beware of those firms who offer a 'quick fix solution' to your debts through 'little known government laws’.”
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