10 November 2009
Funding from Jersey’s fiscal stimulus package has enabled the Citizens Advice Bureau to help many more islanders to manage their personal debt. The CAB was allocated £43,000 of the £44 million which was set aside by the States to help businesses and individuals through the economic downturn.
The bureau’s figures show a rise in queries from people facing problems with debt. Its manager, Francis Le Gresley, said: “In 2008 we dealt with a total of 121 new debt cases. In the first 9 months of 2009 we have dealt with 134 new debt cases. And enquiries have been rising in recent months, with 56 of the 134 coming forward in July, August and September.”
Mr Le Gresley is especially concerned about a new phenomenon that has been reported to the CAB. He says some clients have received unsolicited calls from fee-charging, debt management companies in the UK: “The problem is that local creditors and debt collection agencies will not necessarily accept offers of repayment made by debt management companies as the monthly fees charged reduce the amounts available for creditors. We are anxious that Jersey people who are struggling with their debts do not take up these offers.
“We can set up an appointment with a Debt Advice Caseworker within 3 working days of a client’s first contact with the bureau, and we recommend using free debt advice from charities like Citizens Advice.”
The Social Security Department sponsored the fiscal stimulus bid from the CAB, as part of its responsibility for facilitating bids from organisations aimed at helping individuals. The Minister, Deputy Ian Gorst, said: “The Social Security Department works closely with the CAB, and we were very pleased to sponsor the bureau’s application for this much needed extra funding. It’s worrying to see a rise in debt queries, and it is important that we do all we can to help individuals through this difficult time.”
The Treasury Minister, Senator Philip Ozouf, said: “I am pleased that some of the money we put by for difficult times is now being used effectively to help Islanders deal with the economic downturn. This may have been a modest amount, but it has been well targeted and is helping Islanders when they need that help.
“We are continuing to ensure that potential projects meet rigorous criteria before their bids are approved. I hope we can soon release tenders for a number of large construction projects, as we need to carry on injecting cash into the local economy until the global situation starts to improve.”
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