Debt Busting

Fact: Britain’s personal debt is increasing by an astonishing £1million every five minutes - what does this mean?

Over the past 10-20 years, millions of people in the UK have been able to enjoy the benefits of a greater availability of credit. However, with news about the global ‘credit crunch’ ringing in everyone’s ears, after years of relatively easy borrowing it’s all too easy to find yourself with debt problems.

Personal debt can be a consequence of a wide range of factors including unemployment, bereavement, mortgages, increasing energy bills, family break-up on so on. But if you find yourself in deep water then don’t panic because help is at hand.

A new report has assessed the problems of debt in Cumbria and recommends that more needs to be done to support those who find themselves in the grip of a debt crisis.

The county council’s Scrutiny Management Board has carried out a review of

the problem of debt and financial exclusion in the county. The report makes a number of recommendations and praises the council’s work in support of the Citizen’s Advice Bureau (CAB) and that of the Debt Rescue and Money Advice (DRAMA) project. This is a partnership initiative involving local authorities, housing associations and credit unions that have come together to offer practical support, cheaper loans and advice in some of the most deprived areas of the county.

Currently 30-35% of the work carried out by Cumbria’s CAB is debt-related. In Barrow alone staff at the CAB have seen new debt rise to nearly £6million in 2005/6 which is nearly double the amount of the previous year. Nationally CABs deal with nearly 7,000 debt problems every day.

Another finding of the report was the need for local authorities to recognise the important role of Credit Unions in steering people towards cheaper borrowing and better management of their financial affairs. Credit Unions provide a safer and cheaper option for people to borrow money with much lower levels of interest compared to that of doorstep lenders and loan sharks. As well as keeping people’s money within the local economy, credit unions provide a very useful public awareness raising role particularly for the most vulnerable.

What can you do?

So what can you do if you find yourself in financial difficulty? 

There are lots of organisations that can offer advice but the Citizens Advice Bueaux (CAB) is a good starting point. The volunteers there will do all they can to help you sort out your finances including contacting lenders on your behalf to make alternative payment arrangements where necessary. 

The CAB can also make sure that you’re receiving the full benefits that you may be entitled to. The most important thing to realise is that you’re not alone. 

To view the full scrutiny report on Debt in Cumbria visit: cumbria.gov.uk/scrutiny 

Telephone numbers for all CABs in Cumbria can be heard later on in the cd. 

Credit Union contacts

Cleator Moor and District Credit Union, Ltd,   Cleator Moor Council Centre, Market Square Tel: 01946 817508 

Maryport and North Allerdale Credit Union, Ewanrigg and Netherton Community Centre, Ennerdale Road, Maryport Tel: 01900 816111 

Whitehaven Credit Union, Market Place, Whitehaven Tel: 01946 66755 Workington and District Credit Union 52 Finkle Street, WorkingtonTel: 01900 63642 

Carlisle and District Credit Union, Currock House Community Centre, Lediard Avenue, Carlisle Tel: 01228 594007