Uk Callers Flood Debt Helplines

As many predicted, after the Christmas period there has been a
surge in callers seeking debt advice in the UK
There’s usually a rush of callers with debt problems after the
festive break Sometimes people delay seeking debt advice until
after the holiday; others simply overspend and can’t afford the
credit card bill when it arrives
This year, the number of people looking for debt help and advice
has broken previous records One agency reported 12,000 callers
in the fortnight after the holiday – the busiest period since
they started in 1987
Many retailers reported a slow-down in sales in the run-up to
Christmas It was suggested that people were reluctant to use
their credit cards or increase their bank overdraft While there
was a last minute boom in sales, it’s clear that many people
were trying to save a little this year, preferring essential
items for presents, such as clothes
Indeed, we reported in the Debtsolver blog that the rate of demand for consumer
credit fell to 10% in November – its lowest level since 1994
So why is there such a flood of people seeking debt help?
Part of the reason may be a growing awareness that there is help
available for anyone facing a debt crisis People realise they
can get help; either in the form of debt consolidation, whereby
their loans are consolidated into a single monthly payment, or
they can look to taking out an IVA (individual voluntary
arrangement) where they renegotiate their debts with their
various creditors Personal debt levels are still at an historic
high, but there’s some evidence that people in the UK are
starting to manage their debts better, both by cutting back on
their borrowing, and by showing a greater willingness to get
professional debt advice

Tags | advice, arrangement, christmas, consolidation, consumer, credit, crisis, debt, individual, levels, overdraft, period, result, voluntary