£5.5m of hardship hits home
FINANCIAL hardship is hitting an increasing number of North Cornwall residents as the economy slides into recession.
Personal debt and house repossessions are soaring, with local Citizen's Advice Bureau volunteers seeing a record number of clients.
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North Cornwall CAB calculates that people they are advising are £5.5 million in debt, and say that is just a tiny proportion of the local population in the red.
Easily obtained mortgages and credit from banks and other lenders have been blamed for the situation, along with escalating utility prices which are putting many, especially the elderly, in serious financial difficulties.
Bodmin in particular has seen more and more people coming to the CAB for assistance, with loan sharks going around the town's estates enticing people to take out loans at 190 % interest rates.
Latest figures from Cornwall Citizen's Advice Bureau show the number of clients with mortgage and secured loan arrears has shot up by 67%, whilst those with fuel debts have increased by 86%.
Government figures reveal the number of house repossession claims issued in Cornwall and Devon went up by 41% this spring, compared with the same period last year.
North Cornwall CAB manager Liz Evans pointed out that only a small proportion of people in financial hardship make appointments to see bureau advisers.
"The people we see are just the tip of the iceberg.
"Not everyone will come and see us,'' she said.
"But we are seeing mortgage repossessions increasing, also a lot of people with employment problems and others who have complex debt problems.
"The self-employed and people with small businesses are using their personal credit to help finance their businesses, and when that happens, it can cause difficulties.
"But we do have solutions we can offer to most of these problems.''
Mrs Evans said there had been cases where people receiving the minimum state benefit of less than £50 per week had been loaned as much as £15,000 by banks.
"Most people get into serious debt after trying very hard not to do so.
"We don't see people who recklessly borrow money to fritter it away on a holiday, but one adverse event can tip them over.''
She said loan sharks were active in Bodmin, with their agents becoming part of the community with ready cash available.
And she believed things could get even tougher this winter.
"We are very concerned about fuel poverty.
"North Cornwall has an above average elderly population who have a high dependence on fuel, and I think a lot of people are going to suffer this winter, and the people who are suffering most are the people with the least.
"A lot of people in North Cornwall are struggling, and I think the situation is going to get worse.''
She said CAB was a confidential service which was always available to people in need of help and advice.
"There is no need to pay for debt advice.
"If we can't help then we will refer people to reputable agencies which offer a free service.''
● People needing help from North Cornwall CAB should phone 01208 74835.
4 Comments
by Cath, Nanpean
Wednesday, October 22 2008, 7:34PM
“It's not just North Cornwall thats hard hit, it's Cornwall as a whole! As a young family we find each month harder and harder to survive. We buy the value range on nearly everything in the supermarket as we can't afford anything else. Taxes have been hiked up on everything with no visable improvement to services - The NHS is going downhill, Car Tax is a complete farce - new cars mean lower emmissions so lower tax BUT how are you meant to afford one??!!, Council Tax (dont get me started on that one!), the cost of living has soared but yet wages stay the same how are people suppose to survive without getting into debt? its impossible.
My husband and I are now facing the worst time of our lives, I'm dreading christmas as i know we can't afford anything of what the kids have asked for. We are fast facing the decision of bankruptcy either voluntarily which costs an arm and a leg!! (If you can't pay your bills how are you supposed to pay to declare yourself bankrupt?) or because we just simply can't pay our bills and we'll be declared bankrupt.
Our house is on the market, but not selling (one sale has already fallen through because the mortgage broker went bankrupt, which really says a lot!). I know i'm not the only person in this situation. but when i saw this feature i couldn't help but have a rant! The country is fast falling apart.”
by Justin, Helston
Wednesday, October 22 2008, 6:57PM
“To anyone who want's to understand the REAL reasons behind why are political parties
seem to have all the same agenda's of protecting intrest's of big banks over the taxpayer or why we have a CREDIT CRUNCH in the first place,you should read one of the best books about who really control's the financial world agenda The True Story Of The Bilderberg Group by Daniel Estulin,it's the real deal on how we are all going to suffer under a NEW WORLD ORDER/ONE WORLD GOVERNMENT led by some of the most elite businessmen in the world. It's important to understand who are real master's are. You should be able to purchase the book over the internet or from high street bookshops.”
by peter, cornwall
Wednesday, October 22 2008, 4:55PM
“Nic,penz...............Has said it all,i am sad to say.”
by nic, penz
Wednesday, October 22 2008, 9:58AM
“Its no different in south west ! its hitting hard now! .The last five years the cornish people have been slagging the Holiday people,for clogging the roads up ! Buying the houses! stay away, we want the old cornwall back! They say ! you might just get what you wish for!. No jobs, poverty,crime up,empty shops, disaster?”