'Challenging' times for families in Nottingham mean that more people are going into debt because they cannot afford to pay for their basic needs, the Citizens Advice Nottingham & District have said. More and more citizens are said to be turning to the centre in Nottingham for help - with most of them having "more money going out than coming in".
Concerns were raised by Donna Cumberlidge, the Chief Officer at the Citizens Advice Nottingham & District. The independent charity, which is part of the Citizens Advice network across England and Wales, provides free, confidential and impartial advice and campaign on big issues affecting people’s lives.
Asked what are the biggest problems faced by the people in Nottingham, Ms Cumberlidge said that she noticed a shift in people's debts. "Historically, we would be able to work with people that they would always have more money coming in", she said.
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"So you would be able to work through payment plans with them and work with creditors to sort of help them pay off these debts. Whereas they are already starting with less money coming in than going out.
"That is really challenging. And 10 years ago, a lot of the things that we dealt with was card debt, so shopping and luxury items.
"Now it is rent, council tax, water. We are not talking about luxury items. It is basic things that you need - you want shelter, you want food. One of my debt advisers told me this week that it is not uncommon to see people with between 15 and 20 debts.
"It is incredible to think that people are having so many debts. But it is very easy for people to take out small loans here and there, just to get by on those things that they need."
Another worrying factor, she said, is the increase in people opting 'to buy now and pay later'. "That makes it really easy for people to end up with a debt, which you would not necessarily think is a debt, but it is because you purchase them upfront without the money and then you have got to pay it off."
Another issue that people in Nottingham confront with, Ms Cumberlidge said, is housing. "We have got a housing team and they are currently very, very busy", she added.
"Rental increases are really difficult because there is nothing they can do about it. We can help them look at their budget, if they can afford the rent increases.
"But the other challenge that comes within is with the local housing allowance. So people have got that gap between what they are able to get and the private landlord rental amounts. And that gap is getting bigger and bigger. Particularly for the bigger properties."
On top of this, Ms Cumberlidge added that they have seen a "huge increase in food bank referrals". The advisers at the Citizens Advice Nottingham & District are able to help people with completing applications for various support funding schemes.
But she has called for "more long-term sustainable things that will bring ongoing benefits" to be implemented which would impact families every month. "When people come to us, what we do is like a an assessment and ask them lots of questions - so we understand all their issues.
"We would do a benefit check to find out if we are able to access more support for them. But I think increasingly we are less able to do that.
"A lot of people are already accessing the most they can." Asked if it has become more challenging to find solutions for the people who are struggling in Nottingham, she said: "Absolutely - going back a few years, we could work with people and get really good outcomes, going through benefits that they are entitled to.
"So now we are finding people who already have that, and we cannot claim anymore for them because they are already claiming everything. It is just the fact that everything is so expensive."
In March last year, Money Saving Expert Martin Lewis has warned he is close to running out of tools to be able to help people amid rising energy bills. But he is not alone, with Ms Cumberlidge adding: "That is how we feel. We can provide things like charitable applications and vouchers that are a one off - we cannot issue those vouchers every week.
"We cannot provide a food pass every week - and unfortunately, that is what some people need."
The cost of childcare, particularly in families with single parents, is another concern. Ms Cumberlidge said that even some people who are not in debt yet, recognise "they will be in debt in two or three months".
And that is caused by their disposable income going down, she said. "That is a trend and it is scary - because it is going to start hitting quite soon. People are struggling to pay for essential items - energy, rent, food, clothing and personal hygiene."
She also advised people to seek help as soon as they can. "I feel really strongly that people who recognise that they will be in debt in two or three months need to seek help. The more we can help early on the better."
The Citizens Advice Nottingham & District can be contacted here.
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