Many struggling with loans and credit cards too embarrassed to get help

According to new research many people that are suffering financially due to their high level of debt are too embarrassed to seek advice, putting them in an even worse position and often resulting in serious action being taken against them – action that could have been avoided with the right financial advice and assistance.

Another reason that was highlighted in relation to why people fail to seek timely debt advice was that many people simply were not aware of the help that was available and where to find out more.

Consumer debt in the UK has rocketed over recent years, and with nearly one and a half trillion pounds of debt to repay collectively many people are struggling to keep up with debts such as credit cards and loans.

Both the Consumer Credit Counselling Service and the Citizen's Advice Bureau have confirmed that enquiries relating to debts have risen over the past year. And although the number of IVAs that have gone through have dropped in the past few months, this is thought to be more a result of banks' reluctance to accept this course of action rather than a drop in interest from consumers.

According to recent data there are over three and a half million adults suffering serious financial problems in the UK and a further four million suffering financial stress.

A spokesperson for the Money Advice Trust stated: 'Often people think they have nowhere to else to turn and they fall victim to loan sharks. My advice to those struggling with debt is to pick up the phone. There are people who can help you find a solution - including Money Advice Trust.'

In the meantime, the government has promised funding of£45 million over two years for face to face debt advice from agencies such as the Citizen’s Advice Bureau and the Money Advice Trust.

Tom Smith
13th March 2007