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Debt problems are still continuing, regardless of the perceived improvement in the economy, and may of those problems are only going to get worse in 2010 unless people act now.

Debt and benefit problems are currently growing at an annual rate of 21% with employment problems up also 17% in the last year, according to Citizen's Advice. They have had to deal with 10 million debt problems over the last year and unless those debt problems are addressed, they could be seeing a lot more problems in 2010.

Worryingly, latest quarterly numbers show that there are continuing significant rises in the numbers of people seeking advice on mortgage and secured loan arrears, up by 28% on 2008 figures.

In light of this continued demand, Citizens Advice is urging people to avoid starting 2010 with a debt hangover and to budget carefully for the festive season.

David Harker chief executive of Citizens Advice says: "Citizens Advice Bureaux across the country are seeing increasing numbers of people seeking help, with benefits and debt enquiries alone up over a fifth in the last year. Extra funding has meant bureaux have seen more clients, but for many the impact of the recession will be felt for a long time to come.

"Every community is experiencing a change in circumstances. These new statistics show how many people are struggling as a result of losing their job or a reduction in pay or hours, leading to difficulties managing loan repayments."

This is sensible advice from Citizen's Advice. If you have been dealing with debt through 2009 without any help, it might be time to seek a change and get the advice of a professional. That might come from a good mortgage broker – they are experts in dealing with debts and managing finances. Talk to one today about making your debts work for you in 2010, rather than the other way round.

SOURCE: CAB, 03/12/09

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