Thousands ask for help over £40m debt
Residents in one Black Country borough have racked up more than £40 million of debt, with 43,000 seeking expert advice in the last 12 months.
Residents in one Black Country borough have racked up more than £40 million of debt, with 43,000 seeking expert advice in the last 12 months.
Sandwell's Citizens Advice bureaux says the figure is just the tip of the iceberg.
The true extent of debt in Sandwell could be much, much more, they say. John Davies, chief executive officer of Sandwell Citizens Advice bureaux, said the figure has increased rapidly, up from around £25 million just three years ago. He said: "We started to see the effects of the credit crunch last year.
"We could see what was coming. The amount of debt the bureaux has dealt with is a staggering £40 million plus and we believe this is only the tip of the iceberg.
"Although 43,000 clients may seem a lot it is only between 10 and 14 per cent of the population of Sandwell.
"If these clients managed to generate £40 million of debt, then we have to ask ourselves what the true figure is.
"The main inquiries this year have been debt, benefits and employment issues.
"This is a clear sign of how the economic downturn is affecting Sandwell," he added.
Sandwell Citizens Advice bureaux is a free, independent service operating from five offices in West Bromwich, Tipton, Cradley Heath, Smethwick and Oldbury, with a total of 40 outreach workers visiting doctors surgeries and community centres across the borough.
Mr Davies said that the amount of people approaching the citizens advice bureaux for advice has gone up by around 7,000 people this year and is expected to increase further.
Latest figures show that more than 12,000 people in Sandwell are now looking for work, with 5,090 people joining the dole queue in the last 12 months.
The number of people claiming jobseeker's allowance has increased to 12,311, an unemployment level of seven per cent.
Sandwell Council has set aside a total of £400,000 for debt counselling in its budget for this financial year as more jobs go.
The council will spend the money over the next two years on specialist staff who will offer advice to try and ease the pressure on local families.
Sandwell's citizens advice bureaux can be contacted on 0121 569 2998.
