Latest Debt News
Norwich families see debts pile up
26/01/2006 13:34:00
The number of families struggling with debt in Norwich is on the rise, as escalating energy bills take their strain on people's finances.
As a result, a Debtline service run by the Norwich Citizens Advice Bureau has seen four times more people than normal come to it needing debt advice, Norwich Evening News reports.
According to Debtline's Andy Cobb, the most common reasons why people get into debt are divorce or separation, being made unemployed or suffering from a long-term illness.
Mr Cobb said: "The number of bankruptcies in Norwich last year was double the previous year, so it's not just the number of people seeking advice - the extent of indebtedness has gone through the roof.
"The average amount of debt is £27,000 and that's not including mortgages. It's credit cards, loans, that kind of stuff."
While the reason people get into financial strife might not necessarily be their fault, reacting to their situation by taking out loans may not be the appropriate solution.
"In the case of 84 per cent of people it doesn't work because they run up further debts," Mr Cobb said.
"They don't fully see how much connection there is between what they earn and what they spend and debts continue to accumulate, so they have to take out further credit."
© Adfero Ltd