Tuesday Topic, by Christine Rutter

CASH-STARVED folk in East Lancashire are struggling to cope with the spectre of debt in 1998.

Scores of people have spent the first days of the New Year pleading for help as the financial hangover of the festive season begins to take its toll.

The demands of Christmas led people to cast caution to the wind and spend mountains of cash they just don't have.

The after-effects are sobering for those hard-up folk whose present from Santa was a sackful of debts.

Hard-pressed cash experts at The Advice Centre, in Ainsworth Street, Blackburn, are receiving a barrage of desperate phone calls from people plagued by debt.

"We are absolutely inundated with customers after Christmas," said Val Forshaw, development officer at the centre.

"The pressure is immense, especially from children, to spend money. So when bills come in after Christmas it is a real shock and that is when people realise they have a problem."

Debt counselling has become a boom business in the recession-hit towns, as a spiralling number of people flock to advisers for help.

The centre is consulted a staggering one million people every year, facing problems such as losing their home or seeing their business crash.

The money experts have helped customers in Lancashire who owe anything from £30 to £120,000, from businessmen to students.

"The numbers seeking help are growing," said Val. "There are 101 reasons why people get into debt. People don't get into debt by taking out credit with no intention of paying back. People get into debt for genuine reasons, like redundancy, illness or a new baby. "Sometimes people are managing their finances then something happens and they face debt for the first time. A shake-up in their lifestyle is needed."

People find comfort, relief and support from The Advice Centre.

Val said: "People are often too embarrassed to talk to family and friends about their money problems. They can be suffering in silence. It must be a terrible."

"People expect us to say it is all their fault but we don't. For some it is a tremendous relief. They feel they can trust you and really open up about their worries.

"We have had some very depressed people who really feel at the end of their tether. They feel a failure, that they have let down their family. Often people are distressed because they can see no way out. They have creditors banging on their door, harassing them at work. They are under immense pressure and it causes a lot of problems with relationships and families."

Debtors fazed by their debts are given advice on ways of dealing with the problem and, often for the first time, see a way out of their misery.

Those in debt tend to pay off the creditor who is shouting the most but Val said this is not always a wise move.

"You have to prioritise. If you fall behind with rent or mortgage arrears then you lose your home, so that comes first. We give debtors a break from the creditors to look at the situation calmly." She advises people to get their free and confidential advice fast or risk sinking further into debt and losing everything.

Loan sharks are still biting in Lancashire as they lend money at extortionate interest rates to people who have no idea how they will ever repay the cash.

"There is no set definition of extortionate credit," said Val. "But in cases where we feel that the rates of interest are extremely high, we get the trading standards involved if the customer agrees."

Val believes a lot of debts would never arise if schools did more to encourage children to learn about credit and budgeting.

But, for the meantime, The Advice Centre is set to beef up its service with another centre being opened in January in Darwen.

Miranda Carruthers-Watt, head of rights, advice and information, said: "Blackburn has got a problem with poverty. We are expanding to try and help more people manage their affairs."

Anyone needing help should call 01254 583350.

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