Locals going without food as recession bites

0 - 0 • Published 12 Jun 2009 12:50 0 Comments

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DEBT levels in Peeblesshire are higher than ever before - and some are even going without meals as they try to pay off their arrears.

This week the Scottish Citizen"s Advice Bureau Service across Scotland released a report - Drowning in Debt - which shows the levels of debt among their clients has doubled during the last five years.

The report revealed a picture of rapidly mounting debt against a background of increasingly aggressive recovery tactics from some lenders.

This picture is only too familiar locally for Peebles CAB manager John Montgomery.

He said: 'I am not surprised at all that the Scotland-wide figures show a doubling of debt across the country. Our local statistics here show the same trend.

'For people on low incomes, or those who have lost their job, the recession has brought a 'perfect storm" of dangerous economic conditions. Incomes are falling, prices are rising, lenders are becoming less patient and sources of affordable credit are disappearing.

'Some local people have told us that they have chosen to forego meals or turn the heating down, in order to try and pay off their debts. It"s a desperate situation.'

The Scotland-wide report by Citizens Advice Scotland (CAS) shows that nine out of 10 CAB debt clients across the country felt that their debt had affected their mental health, and that two out of five had gone without essentials in order to try to pay off their debt.

Mr Montgomery said: 'One client with mental problems and £50,000 of debt was given an expensive mobile phone contract by a company who had obviously not made any credit checks, thus increasing his already unmanageable debt problems, not to mention the obvious effect on his health.'

Another client persistently received telephone calls from a collection agency acting on behalf of a major credit company at all times of night and day.

Peebles CAB had been negotiating with this company for some considerable time and had explained that due to serious health problems the client could not in any way make any payments towards his debts.

This did not deter the agency from continuing to harass the client and only serious negotiations with the credit company eventually led to the debt being written off.

Mr Montgomery said: 'It"s time for governments at all levels to sit up and take notice of this situation. I agree with the recommendations in the CAS report - where they call for measures to increase access to affordable credit for those on low incomes and curb unreasonable behaviour by creditors.'

This view is also echoed by local MSP Jeremy Purvis who himself has met with numerous constituents struggling with debt.

He said: 'For the first time in a long time the Borders has been hit by both debt issues and high levels of unemployment.

'I"ve encountered many struggling with rent arrears and I"m referring more and more constituents to CAB and SBC"s Welfare department.

'An alarming statistic is that between 10 and 20 per cent of people aren"t claiming what they"re entitled to, be it due to ignorance, fear or pride.

'Public awareness needs to be raised regrading this and I"m sitting down with Borders CAB in the coming weeks to discuss this and our shared casework.'

Peebles CAB recently employed a part-time money advice worker to assist clients with financial problems. However, the service still depends greatly on the volunteer advisers who are the backbone of the service, and are always seeking new recruits.

If anyone wishes to join CAB to help at this most difficult of times, please contact the office on 01721 721722.

This article appeared in Peeblesshire News 12 Jun 09

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