Households feeling the squeeze (From Malvern Gazette)

Households feeling the squeeze

10:50am Friday 30th December 2011 in News

HOUSEHOLDS are really starting to feel the financial squeeze with an increasing number struggling with debts and declaring bankruptcy.

Figures described as “alarming” show that more than four times as many people are declaring themselves bankrupt in Worcestershire when compared to figures a decade ago - the Insolvency Service found 5.2 per 10,000 people went bankrupt in the year 2000 but that rocketed to 21.1 per 10,000 in 2009.

Meanwhile the latest figures from debt charity Consumer Credit Counselling Service (CCCS) show the average person in Worcester seeking help with their debts had just £17 left over each month after meeting their basic living expenses.

The average person in Hereford seeking help with their debts was £6 short of the amount needed to cover even their basic living expenses each month.

In Worcester, 396 people contacted CCCS last year - an increase of 24 per cent in just two years - for advice on dealing with an average of £19,832 owed on credit cards, personal loans and other kinds of unsecured debt.

A total of 213 people in Hereford contacted CCCS last year - an increase of 28 per cent in two years - for advice on dealing with an average of £18,185 owed on credit cards, personal loans and other kinds of unsecured debt.

CCCS’s new figures reveal the extent of the challenge facing many struggling households who can barely afford to meet their basic living expenses and have hardly any money left over to repay debt or save for the future.

The charity is warning that high inflation and rising bills in the period since the data was collected mean that the situation is likely to be even worse for families in Worcester, especially since the splurge on Christmas.

Delroy Corinaldi, CCCS director of external affairs, said: “Many households in Worcester and Hereford who were already struggling to cope have seen their disposable income fall relentlessly this year and I am concerned that the added pressures of Christmas will push many further into the red.

“I would urge anyone who is in this position to seek free advice from a debt charity such as CCCS as early as possible.”

Mr Corinaldi said the sooner people seek help to reduce their debts the less likely it will be they will have to file for bankruptcy.

To contact CCCS for free and confidential debt advice call 0800 138 1111, which is open 8am to 8pm Monday to Friday, or log onto cccs.co.uk where there are also links to a free online guide for anyone wanting to know more about bankruptcy.

Alternatively visit your local Citizens Advice Bureau.