South Ayrshire Council

Feeling The Pinch?

With the recent interest rate rises and the possibility of more to come, many families will be feeling the growing pressure of debt at the moment. Credit is a part of everyday life and without the spending power it brings to customers many businesses in South Ayrshire could not survive. Unfortunately when people are unable to pay back their debts, pressure starts to mount and their physical and mental health begin to suffer.

The average household debt in the UK is £9,000 (excluding mortgages). A recent study showed that 89% of debt clients worry about their money problems 'most' or 'all' of the time and about 27% of couples regularly argue when they try to discuss their finances. Residents of South Ayrshire are just as affected as other parts of the country but luckily help is at hand.

South Ayrshire Councillor Peter Convery, responsible for Trading Standards issues explained, “Within our Trading Standards Advice Team we have advisors who can help people manage their debt. They can deal with all types of difficulties ranging from rent and mortgage arrears, secured loans, council tax, personal loans, hire purchase agreements, credit cards, store cards, catalogues and fuel debts. Advisors can negotiate reduced repayments that people can afford. The level of debt dealt with by advisors is at its highest level, £12 million this year and the situation does not look as if it will improve in the foreseeable future. Last year we saw a 20% increase on the number of residents within South Ayrshire who came through our doors for help and it is common for clients for have debts in the region of 30 to 40 thousand pounds, excluding mortgages.”

A spokesperson for Trading Standards added that there is no such thing as a 'typical' debt client, “Nowadays anyone can have money problems as most of us use credit and our circumstances can change without warning. It doesn't matter whether you have a high or low income, are working or unemployed, retired or a student. Debt can and often does affect us all.”

Carole Parker, the Advice Teams' Money Advice Development Officer said, “The service we provide is designed to help people to pay off their debts, take control of their finances and get their life back on track. Most people who take on credit commitments want to repay their debts, however circumstances can change, meaning that they do not have the funds to do so. Debt collection agencies frequently request payment in full. Our advisors examine all the options available and help the client to make the choice best suited to them. We can help arrange realistic payment arrangements with the creditors taking into consideration the person's individual financial circumstances. We will prepare a budget focusing on any priorities and help the person take control of their own affairs.”

However Councillor Convery warned, “We are subjected daily to adverts on the TV and in newspapers tempting us to take on one large loan with 'only one monthly payment' or 'use Government legislation to get rid of debt'. These claims don't tell the whole story and we urge people to be cautious about using these methods and certainly never to do so without seeking advice first. In fact The Advertising Standards Authority recently investigated and upheld a series of complaints about ads that made misleading claims about the extent of debt reduction some companies were promising. Taking on further credit commitments is not the answer when a person is already overstretched.”

FREE Help is available for people with money worries within the South Ayrshire Council area. If you need assistance please call Trading Standards on 01292 616060.

July 2007