'Seek advice if you are facing trouble'

By lpsyllides

Households across the region are struggling to deal with redundancy, debt problems and rising prices, but there is support available to help families balance their budget. Business reporter Louise Psyllides spoke to Simon Harris, chief executive of Stoke-on-Trent's Citizens Advice Bureau.

IT COMES as no surprise that inquiries from worried North Staffordshire residents about debt, employment and benefits have shot up at Hanley's Citizens Advice Bureau (CAB).

Simon Harris, the agency's chief executive, says staff have seen an extra 1,000 people come through the doors during the first three months of the year.

And the number of people seeking help for employment and debt-related problems has doubled.

Mr Harris, pictured below, said: "It's a bit difficult to make a straight comparison because we've changed the way we analyse things, but if you compare what was our first quarter last year, from April to June, to our first quarter this year, which was January to March, we've had an extra 1,000 people coming in to see us.

"That's an increase of about 15 per cent. During that time we've also seen the number of debt queries virtually doubling to more than 5,000.

"We've seen a similar increase for employment problems to about 500 in the first quarter, and employment benefits queries have risen by about 25 per cent.

"What we can say now is that more than one in three queries are to do with debt, and questions about benefits represent about one in four."

The CAB has taken on extra staff in recent months to deal with the increased demand, but Mr Harris admits the service is still being stretched.

He said: "The demand for debt advice has been so great that we have been struggling to deal with it, so we are prioritising those who have reached crisis point."

But he added there are many things people can do for themselves before reaching that stage.

He said: "We would say to people, if you are having problems seek advice as soon as you can. Certainly with debt problems it's easier to try to sort them out early on rather than leaving them to escalate.

"People can do things themselves – you can look through your budget and see if there is any expenditure that isn't essential.

"If you're struggling with your mortgage payments, talk to your lender and see what options are available.

"Lenders are being encouraged very strongly by the Government to avoid repossessing people where at all possible.

"People may be able to benefit from schemes such as a mortgage holiday, although that will rely on you being able to convince your lender that you will be able to pick up the payments again.

"If you have credit card debt, the simplest thing to do is to stop using them. Cut them up and send them back – companies are more likely to freeze the interest if they know you're not going to be using the card any more."

Mr Harris said taking time to sit down and prioritise outgoings can help.

He said: "The priorities are the things that have the most serious consequences if you don't pay – obviously things like your rent or mortgage where you could lose your home.

"With your gas and electric bills, you could be disconnected, and if you don't pay your Council Tax you risk the bailiffs coming round.

"If you have a fine from the magistrates' courts you are paying in installments, that's also a priority – again there's a risk of the bailiffs turning up – and in extreme cases you could be sent to prison.

"A TV licence is something people often forget about but if you don't have one you could be fined.

"If you need a car for work, make sure it's insured and taxed. House insurance is also important – there are a lot of people on lower incomes who don't have building or contents insurance.

"It could be that you default on your mortgage if you don't have it in place, and there is also the risk of being a victim of fire or burglary – especially because in a recession there is generally an increase in burglaries."

He added: "It's a case of making sure you can deal with those priorities and then cutting out any unnecessary spending. Make sure you have enough left over to pay for food and basic travel to work and school, then if you've got any money left you can look at trying to deal with any unsecured debt.

"Contact your creditors, tell them your situation and see what they say.

"If your creditors don't agree to help you out, then it's time to seek advice from us and other agencies."

As the recession has taken hold, thousands of people in North Staffordshire have lost their jobs as the axe fell at the likes of JCB, Wedgwood and Woolworths.

Mr Harris added: "For people whose income has dropped, it's well worth checking out what tax credits and benefits you may be entitled to.

"It will depend on your circumstances but you can contact us or the Department for Work and Pensions direct. If your employer goes bust getting hold of pay owed and redundancy pay can be more difficult, but you shouldn't assume the money has gone – you should seek help in trying to get it."