36% more people in Exeter are struggling with debt than last year
The number of people struggling with debt in Exeter has risen by 36% since last year.
Charity Exeter Citizen’s Advice Bureau have published figures today that show that more and more people are seeking their advice on how to cope with mounting debts.
The average amount that people in Exeter owe has risen by 14% to £10,543 per person.
As well as debt enquires there has been an increase in the number of people seeking housing advice, rising by 26% on last year.
There has, however been a decrease in the people seeking advice on including welfare benefits, employment, and relationship problems, and they are returning to levels closer to those seen before the recession in 2008/09.
Exeter CAB Chief Executive Steve Barriball, said: “This is evidence that the human impact of the on-going economic difficulties are far from over for people who have lost their jobs or their homes, or both. Yet, there are hundreds more people struggling with debt and poverty, or affected by the welfare reforms, that we want to be able to assist.
“We welcome the reduction in welfare benefit enquiries, compared to last year, but are worried that the next round of the Government’s reforms will see the number of enquiries rise again. However, we are already seeing the impact on households from the rising cost of living which means that many families are struggling to cope financially. The recent announcements on energy price hikes may be the final straw for many families.”
Despite recent pressure and negative coverage of pay day lenders such as Wonga.com there has been a significant rise in the number of people asking Exeter CAB about their services as well as unsecured loans from banks.
This trend has seen recent efforts to help people from getting deeper into debt.
Last April, the Government pledged £38 million to the Association of British Credit Unions Limited (ABCUL) to help modernise the credit union industry and present them as a more viable alternative to payday lenders.
Credit unions are ‘not-for-profit’ co-operatives which allow members to save money together and make responsible loans. These organisations are often run on a local level to ensure members can get the most out of them.
Minister for Welfare Reform David Freud said: “Credit unions offer an alternative to vulnerable people who have few safe options to get cash when they need it most. They are the antidote to predatory loan sharks or high-interest lenders.
"We are pleased ABCUL will be carrying out our investment to modernise and make credit unions financially self sufficient so they continue to help those in their communities who need it the most.”
To get help with debt or employment or to give your support visit www.citizensadvice.org.uk
