Debt advice charities see 100% rise in cases
Debt advice charities have seen a 100 per cent rise in demand for help over the first quarter and are overwhelmed, the Money Advice Trust has warned.
Speaking the Building Societies Association (BSA) annual conference, Joanna Elson, chief executive of the Money Advice Trust, which runs National Debtline, said the charity can only help just over half of people who call for advice.
"About four million people will need debt advice this year, and currently we only have the capacity to help a small proportion of them," Ms Elson said.
Advisers are not only seeing people who have problems paying their mortgage and consumer credit, they are also helping people with rent arrears and struggling to pay their council tax.
The charity urgently needs extra funding, she added.
More advisers need to be recruited and trained to help people get through the financial crisis and public awareness of free, independent advice must be raised.
Ms Elson also urged building societies to help homeowners who are getting into trouble as soon possible.
"Early intervention is key," she said.
Both the Money Advice Trust and the Citizens Advice Bureau were given extra cash in the Pre-Budget report but are facing high levels of demand, which is leading to delays in helping people.
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