Problem-solving charity Citizens Advice yesterday warned MPs and opinion-formers about the UK's escalating debt crisis and has called for an effective strategy to tackle the problem.
Citizens Advice director of policy Teresa Perchard attended a debt seminar organised by the Conservatives in the House of Commons.
It is almost a year since Citizens Advice published an in-depth review of the problem, In Too Deep, that found that on average Citizens Advice Bureaux clients owed nearly 14 times their monthly income.
Perchard says: “Our research shows that we are at a critical stage where personal debt problems threaten to overwhelm large numbers of people. Usually, all it takes is a small change in their personal circumstances.
“There is now an urgent need for action to prevent debt and tackle debt. Otherwise, the thin dividing line between credit and debt crisis will be crossed by more and more people with potentially devastating consequences.”
Citizens Advice is the biggest provider of free and holistic debt advice in the UK and has seen a 44% increase in new consumer debt enquiries in the last six years. Bureaux now deal with over one million new debt enquiries annually.