Numbers seeking free debt advice soars

ClearStart is expecting an increase in the number of people seeking fee free debt advice after letting debts spiral out of control. This follows data released from the Citizens Advice Bureau (CAB), from April 2008-March 2009 the Citizens Advice service saw 1.93 million new debt problems advised on, an 11% increase on 2007/8.

There was a 49% increase relating to mortgage and secured loan arrears (95,342 new enquiries in 2008/9 compared to 64,053 in 2007/8) and a 24% increase relating to bankruptcy (137,406 new enquiries in 2008/9 compared to 110,819 in 2007/8)

The most common reasons for this increase in debt have been over easy access to credit allowing you to live beyond your means, illness and job loss. There has been a marked increase in store card and credit card debt and also arrears on mortgages, showing that despite falling interest rates, Brits are still struggling during the credit crunch.

This increase in the need for debt advice has seen CAB and other charitable organizations struggle to cope with the demand. Indeed, Money Advice Trust recently reported that it would expect 4 million people to be seeking help and only to be able to provide a service to 2 million of these people

ClearStart, provides solutions to debt problems and asks lenders to cover the administration costs of the debt solutions. The solutions offered by ClearStart are based on resolving debt problems rather than making consumers live with them, negotiating with creditors to get debt forgiveness (typically 60% of the debt is written off in an Individual Voluntary Arrangement (IVA)), stopping further interest and charges normally 100%. In addition, they are the only company that will also pay your last two months instalments of a Debt Management Plan (DMP) as an incentive for consumers to complete their plans.

Chris Moat, CEO of ClearStart said:
“Despite falling interest rates, the average Briton is still struggling to control spiralling debts and this trend looks set to continue. What is important is that fee free advice is sought as early as possible to resolve debt not just live with it.

“If advice isn't sought quickly, debts can spiral out of control very quickly. Early advice can be the difference between keeping a roof over your head and losing your home.”

ClearStart aims to help solve debt problems not just an ability to live with the debt. Recommendations are based on the individual situation and all advice is free. The website ClearStart, offers practical advice for people and provides an online application form or there is a ClearStart telephone helpline available on 0800 988 9345.

Numbers seeking free debt advice soars

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