Joy of Christmas

DEBT advice lines have reported a surge in calls during the first two weeks of the year as consumers take stock of their borrowings after Christmas.

The Consumer Credit Counselling Service said it took 9,310 calls during the first nine working days of the year, nearly 14 per cent more than during the corresponding period of 2005.

National Debtline also reported huge demand, receiving just under 13,000 calls between 3 January and lunchtime last Friday.

The group admitted the surge in demand had left it struggling to cope, with around two-thirds of calls going unanswered, although it stressed that most people eventually got through.

It added that it was recruiting 25 staff to add to the 55 people who currently answer its phones.

Richard Gale, a National Debtline spokesman, said

there was always a surge immediately after Christmas, but the company was receiving more calls this year because consumers were more aware of where they could get help, rather than simply because debt levels had worsened.

He said callers owed an average of between £5,000 and £15,000 each, but some had amassed debts of more than £100,000.

In 1994 just 36,321 people called National Debtline during the whole year, but by 2004 this had soared to 131,206.

Britons now owe more than £1 trillion through mortgages, loans, overdrafts and credit and store cards.

The latest government figures show that more than 12,000 people in England and Wales were declared bankrupt during the third quarter of 2005, the highest figure since records began 40 years ago.

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