The Consumer Credit Counselling Service (CCCS) has released figures which show that hundreds of people in Worcester are in serious need of debt help, with the average person owing nearly £20,000 in 2010.
The debt problems in Worcester were highlighted after the CCCS came across records showing that a total of 396 people from the city and surrounding areas contacted debt help services last year. This represents a considerable rise of 24 per cent in the last couple of years. The charity also released a Debt View map, which highlighted the levels of personal debt in each area.
On average, people in Worcester have debt problems totalling £19,832 (in unsecured debt), which is a little higher than the national average of £19,338. Commenting on this alarming figure, the CCCS’s Delroy Corinaldi said:
“I am very concerned, not only by the high levels of debt we are seeing in Worcester, but also by the continuing squeeze on household budgets that is making it increasingly difficult for debtors to repay what they owe.”
Another problem for the people of Worcester is the pending closure of the money-lending credit union Black Pear, which many locals relied on as an alternative to other, more risky forms of lending. The chairman of Black Pear, Clifford Hobbs, said:
“We stopped giving loans about two months ago and we are just about to hand over to the financial services compensation scheme.
“I think it might get worse for people on low incomes because the credit union was an alternative to doorstep lenders.”
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