Tale from the sharp end of the credit crunch

3:07pm Tuesday 21st October 2008

HELP for debt-ridden residents could soon be as hard to find as credit, after Enfield Council announced that the Citizen's Advice Bureau (CAB) will get no extra cash to fund its work.

People like Astrida Tinson come to CAB as a last resort when they cannot cope any more.

Its debt advice service is working at breaking point right now, with more and more residents in trouble as their problems worsen.

In April, the CAB logged 6,012 enquries at its base in Nags Head Road, Ponders End, compared to 1,216 in the same period six years ago.

Astrida is a desperate debtor. Her difficulties came to a head in September, when she lost her job at a small printing firm after tough trading conditions forced it into cuts.

On the dole with a young mouth to feed, a £120,000 mortgage to pay on a two bedroom flat, lumbered by £14,000 of un-servicable debt on five credit cards, and without any savings, her prospects were as bleak as her problems were big.

This is because Astrida had used credit cards to manage her personal finances.

When banks turned off the consumer credit tap, her fiscal affairs went down the plug-hole.

CAB debt advisor, Joanne Brooks, explains how the charity was able to throw a lifeline to Astrida.

“Our adviser explored her situation, advised her of her entitlement to council tax benefit.

“We drew up a financial statement which shows that with help from Income Support to pay her mortgage interest, she is just about able to cover her essential expenses while on benefits.

“We advised her how to explain her current situation to the credit card lenders and to negotiate a moratorium, where she pays just a token £1 per month towards each debt and asks them to freeze interest and charges on the accounts so the debts don’t go up.

“She negotiated with her mortgage lender and explained her situation to them to see if they could delay possession action.”

The advice Astrida received from the CAB enabled her and her child to adapt and survive in a difficult environment.

The prospects are grim for others in need if this lifeline service cannot help them too.

CAB cheif executive, Fiyaz Mughal, warns the debt advice service is currently running at full capacity and needs more resources.

But Cllr Ertan Hurer, cabinet member for finance, has said no extra cash is available while the economic chill affects the public purse as well.

Enfield CAB is a free service which relies on government grants and donations. The authority donates about £400,000 a year.

For debt advice, contact Enfield CAB on 0870 126 4664, or visit: www.enfieldcab.org.uk To volunteer, complete the form at: http://www.enfieldcab.org.uk/volunteer/volunteeronline/