Government funded debt advice helps society's most vulnerable

Debt advice funded by the Department of Enterprise, Trade and Investment is helping the most vulnerable in Northern Ireland society.

That was one of the findings from an independent report, by PSC Management, based on the debt advice provided by the Citizens Advice Bureau (CAB) to just under, 6000 people over the last four years.

Enterprise Minister Arlene Foster welcomed the report, at its launch by the CAB in Parliament Buildings, Stormont, Belfast.

Arlene Foster said: “The independent analysis of the debt advice, funded by my Department and provided by Citizens Advice, concluded that the service is ‘helping very vulnerable people’.

“It indicated that more than 50% of those who accessed the debt advice service were on means-tested benefits.  It is reassuring to know that the debt advice service is reaching those in greatest need.”

The Minister also acknowledged the CAB’s latest Dealing with Debt Annual Report, which was launched at Parliament Buildings, and showed the level of increased demand on the service over the past two years.

She said: “CAB’s Annual Report shows that the ‘Dealing with Debt’ service provided advice to approximately 2000 new clients in 2007/08 with an average of over 165 new clients per month.

“The amount of new debt dealt with during the year was nearly £14 million. Almost 70% of the total debt was made up of the three mainstream forms of credit – namely credit cards, personal loans and bank loans. This mirrors the situation in 2006/07.

“From 1 April this year, the provision from my Department for face to face debt advice will double for the next two years to £800,000 per annum and £200,000 per annum funding has been provided for a telephone debt advice service. This will help people to take well directed steps to regain control of their own financial affairs and will reduce demand on the face to face advice service.”

The Minister also vowed to continue to put pressure on the banks to ease the debt difficulties being faced by many.

She said: “The debt advice service has acted as a casualty ward for the credit boom. But in far too many cases the debt problem has become so real and pressing that the debtor needs specifically focused, free, high quality advice. I have been pressing and will continue to press the local banks to play their part in doing more to help people in debt.

“The provision of debt advice is a key commitment for my Department and I remain committed to giving this issue a high priority now and in the future.”

Notes to Editors:

1. In March 2008 Citizens Advice was awarded the £1.2 million contract by DETI for provision of debt advice over three years
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