PPI holders 'need debt help'

More people are seeking advice on how to deal with their mounting debts, one organisation has claimed.

Ian Boden-Smyth, spokesperson for the UK Insolvency Helpline, said that his firm has invested in more staff and technology over the last five years to cope with increasing numbers of consumers calling for assistance.

He said that more debt advice services have witnessed a spike in call from people struggling with their personal finances, which could be eased with the funds raised from a successful payment protection insurance (PPI) misselling claim.

Mr Boden-Smyth said things are unlikely to change in the short term.

"I think it is going to be pretty busy in this first quarter of 2010. It usually quietens down towards Easter and the school holidays, and then picks up after. If people have debts they worry about it after the holidays," he added.

According to the National Audit Office UK consumers had almost £1.5 billion of outstanding debt in November 2009 and personal borrowing represented 160 per cent of household annual pre-tax income.

Posted by Damien Tomlinson