Some borrowers may never pay back debt

”Some

Three in ten people who seek debt advice are so far in the red that they will never find a way out of debt unless they earn more money, the Consumer Credit Counselling Service (CCCS) said this week.

Frances Walker, CCCS spokesperson, said that although it’s “good news” many people are starting to pay off debt in the recession, for a significant number of people in debt, it is almost impossible to find a solution.

The CCCS has received 300,000 enquiries from consumers seeking financial advice this year.

Some 90,000 of these will be unable to pay back all the money they owe without finding a way to earn more, Walker said.

“The problem we are finding is that people, who are over indebted, are having more difficulty paying their debt back and we’re not expecting this to change for some time,” she added.

“Also people’s debt problems are more complicated now than they were a few years ago because they often have mortgage arrears and have experienced a drop in income.”

Recent figures released by the Citizens Advice Bureau show a 99% increase in the number of enquiries about jobseekers allowance over the past 12 months.

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