“We’re here to help the ‘can’t pays’ - not the ‘won’t pays’ ”
Thursday, 2 February 2012
The CCCS NI team at a recent meeting with DETI Minister Arlene Foster. L–R Raymond Wright, Keith Leighton (LCDI), Arlene Foster (DETI Minister), Debbie Mills, Damien Corr (LCDI) and Malcolm Hurlston (CCCS GB ).
'THE debt problem is 'accelerating' but don't panic' - This is the message from Debt Counselling Manager Debbie Mills from NI based charity LCDI Ltd which delivers the Consumer Credit Counselling Service (CCCS) right across N. Ireland.
Debbie and her Limavady-based team currently manage just under £50m of consumer debt on behalf of clients.
The service is self funding and is available totally free to anyone who requires it. Debbie says: "Our ethos is to help the 'can't pays' not the 'won't pays', we do not condone debt avoidance. CCCS always aims to help its clients pay back what they owe in a realistic timescale and manner, suited to each individual's situation."
The organisation not only delivers debt management on the ground but also monitors debt levels and trends. Their most recent report Debt in the Regions, produced by the Financial Inclusion Centre for CCCS, found that high levels of unmanageable debt, low levels of savings and vulnerability to future income shocks means that Northern Ireland households are among the most financially vulnerable in the UK. The report highlights that Northern Ireland has the highest level of mortgage difficulty in the UK for loans taken out between 2005 and 2010. Around a third (32 percent) of mortgages taken out by Northern Ireland residents in this period are now subject to payment problems - compared to one in five across the UK.
In recent years, the region has seen the fastest growth in demand for debt advice in the UK, with the number of people counselled by CCCS Northern Ireland rising by 80 percent between 2008 and 2010.
The report also concludes that households in Northern Ireland are particularly vulnerable to future financial shocks. Only 29 percent of people in the province have a savings account and only 15 percent have an ISA - the lowest proportions of any region in the UK. A new analysis presented in the report found that Northern Ireland households have barely any cushion against unforeseen financial events, with the average household estimated to spend as much as 97 percent of their weekly income - the highest spending ratio in the UK.
Almost a third (32 percent) of Northern Ireland residents counselled by CCCS have no money left after covering their basic living expenses each month. A reduction in income of £50 per month would increase this figure to more than a half (51 percent).
Commenting on the report, LCDI General Manager said: "The report does not make for comfortable reading. There is no doubt that personal debt problems in the province could see a significant increase.
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