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West Sussex consumers suffering debt

10/07/2008

There have been more reports from local newspapers highlighting the effect of the credit crunch in the UK.

This week the Citizens Advice Bureau (CAB) in Derry, Northern Ireland, said they had seen growing numbers of people applying for bankruptcy in the area.

And yesterday the CAB in the town of Worthing, West Sussex, also reported a rise in people suffering credit problems.

Worthing CAB has seen a 35 per cent increase in debt issues in the past three months compared to the same timeframe in 2007, the Crawley Observer revealed.

David Chapman, manager of the Worthing CAB, said people are struggling with debt to the extent that they are using credit cards to pay for everyday expenses such as food and mortgage repayments.

Mr Chapman described the levels of debt as "horrific" in the newspaper.

He said: "£90,000 to £100,000 is no longer unusual and many are in the £500,000 plus bracket when one includes mortgage debt."

Lenders are becoming harder to find, he added.

Mr Chapman said individual voluntary arrangements (IVA) may be suitable for some people who are looking for an alternative to bankruptcy.

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