TWO debt help services have admitted Islanders’ debts are threatening to spiral out of control.
The Citizens Advice Bureau (CAB) admits it is being overrun with Islanders going bankrupt while the Consumer Credit Counselling Service has seen a huge rise in the number of IW people seeking its help.
The CAB said many people across the Island are struggling financially with debts of more than £8.3 million on mortgage arrears, loans, credit cards and other bills.
But its not just residents that are feeling the pinch. The CAB itself has also suffered from government cutbacks, resulting in six recent redundancies leading to an increase in volunteer support workers.
Kate Brandon, Newport-based debt manager at the CAB, said a major part of the problem was so many people taking out loans.
She said: "Debt on the IW is a huge problem.
There is a very high rate of unemployment which ultimately leads to financial problems. There are a lot of self employed people and they don't necessarily realise that they are entitled to some benefits.
"We are overrun at the moment with people going bankrupt or choosing insolvency as an option. There are measures that can be taken to prevent these outcomes."
From April 2010 to April 2011, the Newport branch had a total of 5,604 enquiries in relation to advice on debts.
She added: "We have recently had to halve our number of case workers from four to two. Our Government funding has been greatly reduced which is having a huge knock-on effect. We have drafted some volunteers in, but case work can take weeks to complete with a client."
Despite the rising amount of debt being seen on the Island, Kate wants to remind people that help is available.
"I would urge people to seek advice from us before it's too late. The worst thing to do is to ignore it and hope it will go away," she said.
Una Farrell from the Consumer Credit Counselling Service said: "Approximately 248 people from the IW sought our help with debt last year — a rise of 104 people since 2005. It could be said that the debt situation is getting worse on the IW, with more people seeking help and fewer being able to enter a debt repayment plan."
Reporter: jamiew@iwcpmail.co.uk