Tuesday 20th May 2008
An increasing number of middle class citizens are seeking financial advice in light of the effects of the credit crunch, it has been claimed.
Transact, the national forum for financial inclusion, reveals that its members are dealing with growing numbers of middle class individuals, rather than the conventional benefit recipients they are used to seeing.
Spokesperson for the organisation Faith Reynolds comments: "The need for free debt advice has always outstripped supply but its hard to see how services that are already seriously overstretched will cope with this extra demand."
Meanwhile, Chris Tapp of Credit Action - a member of Transact - adds that "the whole face of the debt problem is getting uglier".
He suggests that, as well as a rise in credit problems, the situations individuals are finding themselves in are frequently more difficult to resolve than has previously been the case.
Mr Tapp explains that the issues now arising include mortgage arrears and repossessions, which take longer and are more complex to resolve than many other kinds of credit difficulty.
Already some practices have been forced to close their doors due to overwhelming demand - such as the Haywards Heath facility of Transact member Community Money Advice.
The organisation reveals that it has also seen significant rises in queries in traditionally affluent areas, with Tunbridge Wells witnessing a 234 per cent increase in requests for assistance.
Cambridge advisers have received 55 per cent more cries for help, while the Horsham practice is up by 48 per cent.
More than 1,000 companies and individuals contribute to the Transact movement, which aims to promote financial inclusion for all members of society.
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