Advice group dealt with £5m of debt in Lisburn last year

DEBT Action NI has helped people in Lisburn deal with debt of £5m in the last year, £1m of it from credit cards.

In all Debt Action NI, a free government funded debt advice service based at Bachelors Walk, helped 280 people which means the average debt was £17,800.

Advisers Nuala McCaffrey and Jim McDowell have warned that for many the most financially difficult month of the year is January, when the impact of over spending during the Christmas and New Year period hits home.

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For that reason they are expecting to see an increase in the numbers using the service this month. And they are urging people facing money problems to seek advice as soon as possible.

“Debt is a serious problem all year round but impacts families most in January when they suffer the consequences for paying for Christmas,” said Jim. “People are under enormous pressure on the run up to Christmas not only paying for presents and for festive celebrations but also because the weather becomes older and the increased costs of fuel and electricity.”

Since January 2010 Debt Action NI has given advice to over 280 people. Over half of all debts dealt with related to unsecured debt which includes credit cards, store cards and loans. The advisers say they are seeing more and more people who are using high interest credit to pay for everyday items. This short term solution then turns into a long term problem as people cannot find the money to repay the debt. Over one in three people who used the service had experienced problems dealing with their mortgage repayments. And they warn this is a worrying trend as many will have properties which are now in negative equity as house prices drop.

Negative equity means that the house is worth less then the outstanding mortgage. Even if the home is repossessed or the person decides to sell the property or hand the keys back there will still be a shortfall due to the lenders if the property is in negative equity.

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Jim McDowell said: “The rule is to speak to someone early. Don’t pay for debt advice when you don’t need to. Seek independent advice from an impartial free service like Debt Action NI. There are always options for debt problems no matter how bad the situation may appear to be.”

Debt Action are located at 52a Bachelors Walk Lisburn BT28 1XN and are open Monday to Friday and at Cloona House Poleglass on Tuesday from 9.00am to 5.00pm. To make an appointment you can ring 02837-528462. Debt Action NI also has a dedicated website where you can download self help information or send an appointment request.

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