Number seeking debt advice doubles

The number of people contacting a debt advice charity for help online doubled during January as growing numbers of people struggled to keep up with their borrowings.

The Consumer Credit Counselling Service said a total of 8,591 people used its online CCCS Debt Remedy tool during the month – twice as many as in December and more than during any month of 2010.

The rise was far greater than the increase in the number of people contacting the charity by telephone, with people seeking help in this way rising by 63%.

The group is predicting a big increase in the number of people unable to keep up with their debt during 2011, as the impact of high inflation and rising taxes take their toll on household budgets.

Overall, a total of 65,825 people used the online service during 2010, while 287,120 people sought help by telephone.

But despite the greater popularity of its telephone service, the group expects its online facility to see a bigger increase in usage during 2011, as people opt to get advice on their debts from the privacy of their own home, at a time that suits them.

CCCS pointed out that as Debt Remedy is available 24 hours a day, people who wake up at 3am worrying about their financial situation can log on to get immediate help.

However, the group is also worried that the popularity of its online service will in part be driven by uncertainty over the future of free face-to-face debt advice.

The Government announced last week that it was setting aside £27 million to ensure that consumers struggling with debt could continue to get free face-to-face advice during the coming year.

The new money came after 500 specialist debt advisers had stopped taking on new cases because the Treasury had decided to close the Financial Inclusion Fund, which had previously paid for the service.

Source: Press Association