| By over-relying on borrowed money, consumers could | | | | He added that a rising number of people have multiple |
| well find their debt difficulties increasing, an industry | | | | debt difficulties, with money potentially being owed via |
| expert has claimed. | | | | a number of avenues such as credit cards, loans and |
| Speaking on BBC One's Lunchtime News programme, | | | | overdrafts. In addition he claimed that there is a general |
| Peter Tutton, spokesperson for Citizens Advice, | | | | "inability" on the part of consumers in being able to |
| warned of the dangers of consistently funding | | | | handle their debts and prioritise their outgoings. Mr |
| essential purchases by taking out credit such as | | | | Trotter also intimated that seeking help from a |
| personal loans or going into overdrafts. He suggested | | | | professional advisory service was a more effective |
| that by consistently looking to borrow money to see | | | | way of getting to grips with debt difficulties than "going |
| them through periods of financial difficulties, consumers | | | | to loan sharks". |
| could well see problems in handling their debts rising | | | | Meanwhile, the Derby Citizens Advice and Law Centre |
| dramatically. | | | | has dealt with more than 3,500 financial advice cases, |
| Mr Tutton said: "People generally can afford credit | | | | as residents in the city cope with some 4.5 million |
| when they take it out, but something can happen as | | | | pounds of debt incurred via loans and other means. |
| time goes on. That can be quite a small thing like | | | | Sally Johnson, service delivery manager at the centre, |
| getting a bigger gas bill than you expected and it puts | | | | said: "Banks and credit card companies are making |
| your finances out. Unfortunately often what happens is | | | | money out of clients and the problem will probably |
| once people start to struggle they try and do their best | | | | never go away." |
| but often try and manage that by using more credit | | | | Consequently those concerned that they are |
| and it can go up and up and up." | | | | becoming unable to cope with demands on their |
| The representative's comments come after a rise in | | | | outgoings could be well advised to consider taking out |
| those struggling to manage their money has been | | | | debt consolidation loans. Last month, research carried |
| witnessed throughout the country. In the 12 months | | | | out by revealed that 2.48 million consumers are "very |
| leading up to March 2007, the Lincoln branch of | | | | concerned" about how much money they owe. |
| Citizens Advice dealt with some 3,673 issues | | | | Although 65 per cent of borrowers have either not |
| concerning debt - with such worries now making up a | | | | deepened the amount of borrowing or cut the level of |
| third of all enquiries the office receives. | | | | money owed, possibly through a debt consolidation |
| Bureau manager Roy Trotter told the Lincolnshire | | | | loan, the study also showed that 25 per cent of people |
| Echo: "We've had a load of debt-related enquiries and | | | | already in debt have gone further into the red over the |
| it is now our main issue behind benefit and | | | | last three months. Chief executive Sean Gardner |
| employment enquiries. So far in the first five months of | | | | claimed that as the nation's financial difficulties steadily |
| this financial year we have dealt with 1,595 | | | | increase anyone who does not take steps to reduce |
| debt-related enquiries, the projected figure for the year | | | | their debts "is heading for serious trouble". |
| is an increase to 3,828." | | | | |