Registered UK charity, the Debt Advice Foundation, which promotes research and education around debt issues, has launched a freephone hotline to help deal with the increasing demand for support from people struggling with debt and money worries. The telephone service, along with the new Debt Advice Foundation website launched on Monday 10 August 2009. It follows a 27.4% increase in the number of people turning to personal insolvency (IVA or bankruptcy) during April to June 2009 compared with the same period last year and reports that existing charities/agencies are struggling to cope with the increased demand for help.

The Citizens Advice Bureau alone receive an average of 7,241 new debt cases every working day and its debt enquiries are up 21% this year compared with 2008.

Chairman of the Debt Advice Foundation, Dennis Benson said: “As the recession bites, the number of people facing debt problems is rising, with personal insolvencies now at a record high. Traditional support services are struggling to cope with increasing demand, and Money Advice Trust, the government backed debt support agency has predicted that half of the four million people expected to be seeking debt advice this year are unlikely to get an appointment with a debt charity. “With growing numbers of people seeking guidance it’s clear that the need for good quality, independent and responsive free advice around debt and money matters is greater than ever. That’s why the Debt Advice Foundation has launched this new service, which means free access to a trained debt counsellor is now just a phone call away. It’s also the reason we have launched our website to include more detailed information about the options available to people in debt.”

The Debt Advice Foundation helpline is staffed by trained counsellors who will work with callers to discuss the situation and make an initial assessment of their circumstances. The counsellors can provide simple guidance as to how to deal with creditors, through to advice on debt solutions such as Debt Relief Orders, Debt Management Plans, IVAs and bankruptcy. Counsellors are also able to help callers set up an appropriate solution for their circumstances and negotiate with lenders on their behalf.

Dennis explains: “Because the Debt Advice Foundation is a charity, our advice is always

provided for free and without judgement, and callers can be certain that our recommendations are wholly impartial. If you approach a commercial debt advisor, you will sometimes have to pay a fee – particularly in the case of Debt Management Plans.

“Our message to people in debt is don’t panic. There is a way out and there is help available.

You don’t have to face your debts alone – charities like ourselves are here to provide advice and information and to help you put a workable solution in place to tackle problem debt as quickly as possible

R Lacey

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