Debts & Loans

The number of people seeking help with their debts has soared since last year.

Over 100,000 consumers contacted one debt advice charity, the Consumer Credit Counselling Service, in the third quarter of this year.

The number of people contacting the advice service by phone soared by a third to 79,000, while 24,000 used its online service – a rise of over 20 per cent.

Provisional figures for October show even faster growth in demand, with the number of consumers contacting the CCCS up by nearly a half, according to Malcolm Hurlston, its chairman.

"The third-quarter surge came unexpectedly after a flat first half of the year," he said.

The charity's online service, which is called Debt Remedy and can be used anonymously, allows people to enter details of their financial problems on a website. The tool produces advice tailored to the enquirer's particular circumstances in about 20 minutes, the CCCS says.

HOW TO DEAL WITH DEBT

DO try to stay calm and try not to feel guilty or afraid. Recognising that you have a problem is the most important step in solving it. Contact a free debt advice service if you need help.

DO seek professional help for any health, emotional or family problems that may arise from the stress of having financial problems.

DO contact a debt advice charity immediately if there are any financial emergencies such as imminent county court judgments, house repossession or visits from bailiffs.

DO tell your family and friends – and keep them informed of development. They may be able to help you work towards a solution. Letting your partner know the entire situation can be very difficult but helpful. Otherwise, they may continue to spend as before. It could even lead to a breakdown in trust if they discover the true position for themselves.

DO make sure that you are claiming all the allowances and benefits to which you are entitled. Millions of pounds in allowances and benefits go unclaimed every year and creditors will expect you to have considered all the options.

DON'T borrow more money to pay off existing debts. It only creates even more problems.

DON'T spend money on non-essentials.

DON'T despair. There are many things you can do to improve matters and a credit advice charity can offer practical advice and helpful support.