Debt helpline calls surge by 40%
Updated on 29 December 2008
The number of people contacting a debt advice helpline has surged by 40% during the past year, figures show.
The Government-funded National Debtline said it received 23,000 calls from people with debt problems during November, up from 16,000 during the same month of 2007.
The group also said it had seen a 30% jump in the number of people who had mortgage arrears or who had fallen behind with repayments on loans secured against their property.
Overall, it helped more than 90,000 people during 2008, including 8,000 people who were in mortgage arrears.
The number of people struggling with debts has soared during the past year following steep increases in the cost of living and rising unemployment.
The situation has been exacerbated by the credit crunch with cheap credit deals evaporating, while it has become increasingly difficult for people to take out loans or bigger mortgages to consolidate their debt.
The problem is expected to get worse next year as the UK enters a recession, and the Government announced in the Pre-Budget Report that it was allocating an additional £5.85 million to National Debtline to help it cope with the anticipated extra demand.
The group is currently recruiting additional advisers, managers and support staff for both its consumer service National Debtlineand Business Debtline, which offers advice to companies.
Business Debtline received twice as many calls during the autumn of this year as it did during the same period of 2007, while Government funded face-to-face debt advice services also helped more than 100,000 people who were financially excluded during the past year.
It is thought that around 45,000 people had their homes repossessed in 2008, and the Council of Mortgage Lenders expects the number to soar to close to record levels during 2009, with 75,000 people losing their property.
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