Review called for as bankruptcies soar
advice service struggles to cope
Published:
COUNCILLORS in Argyll are calling for a review of a money advice service struggling to cope with demand as the number of people filing for bankruptcy soars.
Argyll and Bute Council's money advice service promoted bankruptcies on behalf of 12 people last year, but the figure has risen to 48 in the year to date.
As the so-called credit crunch bites and the need for help with personal debt increases, the council service has temporarily closed its client list because it cannot cope with demand. Daniel Kelly, chairman of the protective services and licensing committee, said it was calling on the council's controlling executive group to agree to a review of the service because advice staff were regularly having to turn people away.
Chief protective services officer Sandy Taylor said: “As things stand, whenever the number of clients rises to a level beyond which the team can sustain, the service closes the list of those awaiting debt advice and/or intervention.
“Whereas this has previously been something that has happened most often in the aftermath of a Christmas spend, it is now an important tool used throughout the year to balance and manage officer workloads and maintain the quality of service provided. The service is under increasing pressure to help individuals address their unmanageable credit and personal finances.”
Mr Taylor said he could not predict the number of clients who would seek the council’s help, but he expects a continuing demand for the service as people are unable to cope.
He added: “The continuing impact of the widely reported credit crunch in terms of the increased cost of credit, mortgage-rate rises and the end of longer-term, lower-interest deals, coupled with rising fuel and food costs, will hit those who up until now have been able to manage their debt.”
