Friday 27th of November 2009
Debt management plans could be required by Scottish residents after Citizen’s Advice Bureau (CAB) in Glasgow reports that in some areas, the average debt held by clients is £17,000.
Speaking to the Glaswegian, Vincent Chudy, of CAB’s city centre office, states that while the average for the country is £15,000, this ranges from £1,087 in Maryhill to £17,837 in Rutherglen.
Repaying unsecured debt through a debt management plan could result in a reduction of interest rates, while repayment periods will be extended, giving borrowers more time to clear their balances.
This approach could stop debt reaching uncontrollable amounts.
"Our highest ever debt case amounted to over £250,000 comprising credit cards, store cards and personal loans," Mr Chudy says.
However, agreeing to a debt management plan - which is suitable for paying off personal loans, credit and store cards - could prevent unsecured financial commitments climbing further.
"Recently we had a case where the number of creditors required us to use three debt enquiry forms," he adds.
By Chris King
