Guernsey faces ‘record debt problems’
Consumers in Guernsey are witnessing a record rise in debt management difficulties, it has been revealed.
According to the islands Citizens Advice branch more than 130 people contacted the office last year looking for help with debts totalling £7 million, reports the BBC.
With an average debt of more than £50,000, Guernsey consumers have now been reported to face a 15 per cent rise in money owed on Personal loans and other forms of credit.
Citizens Advice manager Kate Raleigh suggested the rise in debt difficulties could in part be attributed to the Bank of England’s decision to increase interest rates four times within the space of a year.
She told the publication: "The rate’s still going up and certainly more people are coming to see us about it."
Ms Raleigh added that the bureau is to launch a financial education scheme aimed at helping islanders manage their money.
Earlier this month, Norfolk borrowers were reported to be experiencing record difficulties in making loan repayments as 1,764 bankruptcies were filed during the 2006-07 financial year, up from 1,508 in the previous 12 month period.
According to the Norwich Evening News, recent interest rate rises, increasing energy bills and a widening ease of getting credit have contributed to the regions debt problems.
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