Shrewsbury is on the brink of a debt crisis, according to officials at a help centre, which has seen a 100 per cent rise in calls from people with debt problems since January.
Volunteers at Barnabas Money Advice in Longden Coleham are working to maximum capacity, with the biggest number of people on their books since they opened three years ago.
Meanwhile, figures from national debt advice charity Consumer Credit Counselling Service reveal that in 2010 levels of personal debt in Shrewsbury were 14 per cent higher than the national average. Shrewsbury residents owed on average £22,034, compared to the national average of £19,338.
Senior advisor at Barnabas Money Advice, Heather Keates, who is also chief executive of charity Community Money Advice, said the sharp rise in people needing help with debt in Shrewsbury was at odds with national trends.
She said: “Nationally there has been a lull in demand for debt help with figures remaining pretty static.
“However for some reason demand in Shrewsbury has doubled since January. We have seen a notable influx of people through our doors and it is very concerning.”
Shrewsbury’s increasing debt problem has been blamed on the high unemployment rate in the West Midlands, said to be having a knock-on effect across the county.
Ms Keates said: “Unemployment, loss of overtime, pay cuts and credit card debts all have a part to play. We are not just seeing low income families in trouble but middle income earners and home owners.” She also said there had been a rise in the number of ex-army personnel contacting the centre who were finding it difficult to adjust to life outside the army, and in particular keeping control of their finances.
Meanwhile, officials at Trinity Money Advice in Meole Brace said they have also noticed a rise in calls from people with complex debt problems.
Ms Keates said: “Shrewsbury is seen as an affluent area and so measures and funding are not in place to help people in debt. There is a big gap between the haves and the have nots in Shrewsbury. We are not at crisis point yet but we are very near the edge. In 18 months time when interest rates increase I think we will see even more people with debt problems.”
by Catherine Ferris