September 10, 2005

Credit card debt and personal debt is something that more and more of the British public, is starting to fall into a spiral where they can’t afford to pay for the debts that they have run up, with the main reason for this is the fact that credit is so easy to come by now and for any level of income to be able to apply for, as credit card and loan lenders look to bring in as much custom that they can.

This has made the amount of people struggling to pay rise rapidly and has led to the government to react to the situation, by giving a £45 million fund, to help increase the level of advisors to help deal with the level of personal debt and to try and help to reduce the hardship that many people are now finding themselves in.

The cash that will be given to organisations such as Citizens Advice and Advice UK, will be spread over a period of two years, to give these organisations the funds to train up more new debt advisors, this is what ministers hope that the cash will obtain.

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Though some are a little more sceptical and that it is a cop out, that sees the lenders of these and loans getting away with the practices, which are putting people in this position in the first place, with the taxpayer being held accountable for the people falling into unmanageable debts.

One of those sceptics has been the Liberal Democratic treasury spokesman Vince Cable, who has been stated as saying that this is all very well, but in the manner of fair ply, the banks and credit card lenders, should be asked by the government to match the amount of cash that is coming from the financial inclusion fund and by doing this they will increase the level of confidence among customers and for that reason only, this should be enough.

Overall this is a positive step to take, as the pain of debt can bite quite deep into families, who are sinking fast under a sea of bills and interest charges and with the money being made available to get more advisors to help those in this position, will hopefully ease their worries and save them from all the other problems that debt brings.