Getting help, says the charity, can make a huge difference in coming to a workable agreement with your lender or fuel company to manage your arrears, but added that it's vital that lenders show forbearance, treat people in difficulty fairly and do everything they should to help people stay in their home or manage arrears.
The figures reveal that Citizens Advice Bureau in England and Wales saw 35% more mortgage and secured loan arrears problems over the last 12 months, compared with the previous 12 months, with 77,324 new enquiries since October 2007. The most recent figures for July to September 2008 show a 51% increase in new mortgage and secured loan enquiries and a 10% increase in fuel debts compared to the same period last year.
-- Advertisement --
However, the charity welcomed a reduction in the number of credit, store and charge card debts, and unsecured personal loan debts being seen by bureau, down 4% year on year, although combined this still represents the largest type of debt the Citizens Advice Service sees at 35% of all the debt problems handled by bureau. Mortgage and secured loan arrears account for 5% and fuel debt 4% of the total debt problems bureau see.
Citizens Advice Chief Executive, David Harker said: "While we are pleased to see the number of consumer credit problems going down, the increase in the number of enquiries about basic essentials is worrying and these figures show how the current economic situation is hitting vulnerable and low income households the hardest.
"To prevent this situation worsening, it is vital that mortgage lenders and fuel companies do everything in their power to help people in arrears to come to a workable solution over repayment arrangements, rather than piling on extra charges. All creditors should treat borrowers in arrears fairly and sympathetically, negotiate with borrowers in trouble and only use court action for mortgage arrears as a last resort.
"Anyone who is worried about debt should seek advice straight away. Get help from a CAB, or other free independent advice agency, who can help you work out payment options, check you are receiving all the benefits you are entitled to and help you claim any money that could off-set your costs. Up to £9.9 billion means tested benefits went unclaimed last year and a free, confidential benefits check could ensure that you aren’t missing out on money that is rightfully yours."
(CD/JM)
