Debt advice charities overwhelmed with inquiries

Debt advice charities overwhelmed with inquiries

Debt advice charities are struggling to cope with high levels of consumer inquiries about debt management, according to a new report from the National Audit Office.

At least two debt agencies are refusing to take on any new clients, the National Audit Office found, while others have waiting lists of up to six weeks for borrowers seeking a face to face meeting with a debt adviser.

Commenting on the report, Kevin Still of EuroDebt said: “Often the individual and families who most urgently need help are those with the higher levels of debt. So the longer they have to wait for help, the greater the problem gets.”

He added that debt advice charities are unpopular with lenders because they encourage a self-help approach to getting out of debt.

“The model used by the charities is well proven to have less acceptance from creditors,” Still said.

In related news, the Association of Business Recovery Professionals (R3) reported that over one million people are struggling with debts.

Peter Sargent, R3 spokesperson, said the early period of recovering following a recession can be a “dangerous time” with many businesses continuing to declare themselves bankrupt.

Tags: , , ,

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 2508 times, 1 so far today