Service may end helping people with £6m of debt

Julie Kenwell • Published 21 Jan 2011 09:00 0 Comments

See also:

FERMANAGH Citizens Advice Bureau staff say they are fearful of what the future holds for their debt advice service, despite figures clearly indicating that last year was the busiest to date for the programme.

In 2010 the Bureau’s debt advisor dealt with £6,654,018 worth of new debt -- almost double the figure of 2009 which stood at £3,363,618.

From January to December last year, 12,608 debt advice issues were dealt with by the local bureau in comparison to 9,523 the year prior.

But according to Fermanagh CAB, despite an overwhelming increase in demand for the service in the last 12 months, there is no certainty that it can remain in place.

Although an independent advice charity, the debt project is currently funded by the Department of Enterprise, Trade and Investment (DETI). This funding period, however, is due to end on March 31 this year.

And owing to the current economic climate and ever tightening purse strings in all government departments, Fermanagh CAB staff are worried that come April, they will be unable provide the service that their hundreds of clients so desperately need.

Manager at the local bureau based in Fermanagh House, Siobhan Peoples, said a regional meeting within the organisation was to be held this week in order to address the issue.

“We are very worried what will happen after March. We have a responsibility towards our clients. We have 934 clients on the system since DETI funding commenced in August 2006, 542 for whom work is still ongoing. It may be a case where we will be told not to take on any more clients and deal with the clients we already have. But the problem there is that money debt advice is the most intense work that CAB does. There is no way that by March this year all the debt issues our clients have will be resolved, so what do we do then?”

And with clients contacting CAB every day for help, Siobhan says they are at a loss for what to do.

“There have been massive changes to the welfare system since last year, many of which will come into effect later this year. And the Budget Review will also have an impact. This means that things will be even worse for people this year -- there are very, very tough times ahead for people. Last year too, there was a big increase in business debt. We dealt with 82 cases of business debt in 2010, many of which were due to the problems with the construction trade. CAB actually had to get training for the money debt advisers in terms of business debt because this was a new phenomenon.

“Besides that, there have been more repossessions and bankruptcy cases as well as the personal debts such as credit cards and loans.”

According to Siobhan, the surge in demand for CAB’s help has placed a great strain on their services.

“There are so many people coming to us now who never needed money advice before because for years they were working and had that safety net around them.”

As an indication of the demand for Fermanagh CAB’s services, money/debt adviser, Kevin Lawrenson, told The Impartial Reporter that from Friday last week to Monday this week (two working days) 10 new clients had contacted him seeking help.

Stating that debt has no barriers in terms of age, Kevin said he has dealt with clients ranging from late teens to in their mid 70s.

“We are under a lot of pressure here,” he said, “I come in in the mornings at around 7am to 7.30am in order to get work done. The volume of cases is just overwhelming and you can only do your best for people. I am dealing with people from every walk of life -- it is heartbreaking.”

He added that the stress that money problems can have on clients is also a worrying scenario.

“When people come in here the first thing they do is worry. Money problems have brought about depression for some people. Without wanting to sensationalise this, I have known clients who have taken their own lives because of the debt they have had. Obviously you feel terribly for the families, but it hits you hard as well. Because you have been dealing with that person, on a regular basis, trying to help them -- help them to see a way out of it all, and it really knocks you.”

Reflecting on the Christmas period only a few weeks ago, Kevin said many people in Fermanagh would have had a worrying festive period.

“All people want to do whatever they can for their children, but in the back of their mind they are thinking what is going to happen in the new year.

“Debt has been experienced by people from all corners of the County -- businesses from large, medium or small backgrounds have all been hit hard. But I always say to people ‘don’t be scared, I will do everything and anything that I can to help’.

“I have nothing but admiration for the people who come in here, they are facing their problems, and a lot more than that will have to face up to it this year. I do think it is going to get worse for people, and I feel very sorry in saying that.

“I have 542 ongoing clients at the moment, plus the extra 10 who have contacted in the last two working days. That just tells you the story -- what am I going to do if the funding doesn’t continue?”

This article appeared in Impartial Reporter 20 Jan 11

Return to the main index, get more from this section or browse our News archives.