Shocking Debt Statistics from the Citizen's Advice Bureau
Phillip Allen, Licensed Insolvency Practitioner at Debt Lifeboat
Statistics recently released by the Citizen’s Advice Bureau (CAB) have come as a shock to many, as it is revealed that the CAB handles 6,600 debt enquiries per day, an increase of 20% on last year. However for those working in the field of debt management, the figures are not so much of a surprise.
Soaring debt can in part be attributed to the rising cost of borrowing. Unfortunately it is inevitable that this situation will worsen in the near future. The estimate that 77 homes will be repossessed today alone is staggering, but will seem minimal in the coming months as fixed-rate mortgages begin to expire and homeowners struggle with the new terms.
Debt Lifeboat has noticed a surge in traffic to it’s website since the start of the Autumn school term and they believe this may be a contributory factor. Not only do people tend to borrow or use credit cards to pay for summer holidays before they have repaid last year’s break, but they are unlikely to seek professional debt advice during the summer months as they are reluctant to discuss financial difficulties with their children.
However, it may be that talking through debt problems with younger members of the family may lead them to err on the side of caution where loans and credit or store cards are concerned in their adult lives. After all, with many people mistakenly believing that a high APR will allow them to pay off their loans more quickly, it is clear that financial education is lacking. Parents being open with their children will hopefully lead to a more financially-savvy generation.
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