MORE islanders than ever are in debt. ‘I’m very worried. The amount has gone from £5m. the year before to £7m. last year,’ said Citizens Advice Bureau manager Kate Raleigh.
‘They say it has slowed down in the UK but there is no sign of it here. There were people with six-figure debts who came to us.’
She said some were so desperate they were considering suicide.
The bureau has seen a massive increase in demand for its services.
A growing number of people are having problems dealing with unsecured bank and finance-company loans and credit-card repayments.
Bureau staff handled 32 new debt-related referrals - with about 130 people seeking help with debt renegotiation.
It has become increasingly hard to reach agreement with some creditors, with negotiations for one client taking over 100 hours.
‘People are taking out consolidation loans but once the repayments are less, the temptation is to borrow more,’ said Mrs Raleigh.
‘A particularly new problem we found last year has been for people in States house tenancies. If they earn more than is collated into their rent and it’s very difficult for them to find a way out of it.’
Three extra volunteers have been recruited, taking the number of debt counsellors to eight.
‘People are at the stage of being desperate when they come to us. Most owe about £36,000 on average on unsecured loans before we even see them,’ said Mrs Raleigh.
She is sure those seeking help are just the tip of the iceberg.
‘We have had people think about suicide. People have considered that because things are so difficult, particularly if they are having pressure put on them by some of the credit- card or loan companies.’
Some are receiving several phone calls daily from such companies pressuring them.
‘It’s better to try and avoid problems before debts actually build up,’ she said.
Article posted on 16th May, 2007 - 12.00am
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