Sharp rise in online debt counselling

CCCS says that 8,591 people used its online counselling tool CCCS Debt Remedy in January this year. This is twice the number of people counselled online during the previous month and a higher number than any month in 2010.

With 65,825 people completing counselling through CCCS Debt Remedy last year, the charity predicts a dramatic rise in 2011. It says this will be due to increasing demands on household budgets such as inflation and tax changes combined with the limitless capacity that CCCS Debt Remedy offers.

CCCS is concerned that uncertainty about continued public funding for free debt advice will lead many struggling debtors to seek help from fee-charging debt advice organisations. It stresses that the capacity of CCCS Debt Remedy along with continued support from the credit industry, will allow it to provide free debt advice for whoever needs it.

Delroy Corinaldi, CCCS External Affairs Director, says:

"The next year will be very difficult for many people and I am concerned that those struggling with debt will end up being charged for debt advice because they are unaware that free advice and support is available.

"I hope that the availability of this free service which can be used at any time online will help prevent people paying for debt advice unnecessarily."