Make debt relief your New Year’s Resolution

People are being urged to seek help now if Christmas spending has pushed them into unmanageable debt.

Of 301 people who were recently interviewed in Rochdale, around ten per cent admitted having taken out loans from doorstep lenders, whose average interest rate is a staggering 272 per cent.

Nearly a quarter of respondents had credit cards, while 21 per cent said they had borrowed to pay basic household bills and rent. A further 16 per cent were borrowing to pay other debts.

These figures show that a sizeable number of people are struggling with their finances and Christmas could have tipped them into unsustainable levels of debt.

The worst thing people can do is take out high interest loans to pay off debts because they may find themselves in a hole that they can’t dig themselves out of.

Seek help sooner rather than later.

The warning comes as the Insolvency Service of England and Wales highlight the growing number of people who are taking out Debt Relief Orders (DROs) to protect themselves from their creditors.

The orders, which are an alternative to bankruptcy, have been taken out by 44,000 people since 2009. A quarter of this number are aged 25-34.

Anyone who would like advice and help should contact one of the following organisations:
 
National Debtline
A charity which offers free and independent advice on debt.
Website: http://www.nationaldebtline.co.uk/
Phone: 0808 808 4000

The Consumer Credit Counselling Service
A registered charity which provides free and impartial debt advice.
The free helpline is open from 8am to 8pm Monday to Friday.
Website: http://www.cccs.co.uk/
Phone: 0800 138 1111