Recession ‘making debt worse’

The debt situation in the UK is being exacerbated by rising unemployment and falling incomes, a debt expert has said.

Spokeswoman for the Consumer Credit Counselling Service (CCCS) Frances Walker stated that there has been a rise in the number of queries this year, with the total for 2009 expected to be 50,000 more than last year at around 300,000.

She stated that the CCCS is unable to reach a solution in a third of cases “because they haven’t got enough money for a debt management plan or for some reason they are unsuitable for bankruptcy”.

This situation has been worsened by unemployment and falls in income, as people are not able to take on extra work to bring in more money, Ms Walker added.

Citizens Advice has also revealed that a very large number of people are affected by debt problems.

It stated last week that it deals with 9,300 new cases in England and Wales every day.

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