Debt increases by more than a third in Northamptonshire

Debt is an ever-increasing challenge for Northamptonshire households, with local charity Community Law Service reporting an increase of more than one third in the last 12 months.

The charity, which provides specialist housing, benefits, debt, energy and immigration advice, provided specialist debt advice to 1,261 Northamptonshire individuals in 2023-2024, debts adding up to more than £28.5million. This marks an increase in debt of 36%, when compared to the previous 12 months.

Also alarming is the fact that in the last quarter of the year, 25% of all Northamptonshire clients had a deficit budget, meaning they had insufficient income to afford even the most essential living costs.

Charity CEO Sarah Hayle said: “Our clients continue to present with high levels of priority debt, including rent arrears and council tax arrears, non-payment of which can have very serious consequences such as eviction for the former and bailiff enforcement for the latter.

“We’ve seen more homeowners than ever now turning to us for advice, with the total mortgage debt up by 115% compared to the previous year. Many of these people are on interest only mortgages and have been hit very hard by the rate rises.

“We also have increasing waiting lists for debt casework, which requires specialist support so we can help with issues such as Debt Relief Order (DRO) applications and while we welcomed additional funding from West Northamptonshire Council to provide specialist debt advice and this is still sadly not enough to meet demand.”

Community Law Service is the main Northamptonshire provider for Debt Relief Orders (DRO), with the charity providing essential support for 21 applications in 2023-2024.

Paul Shepherd, Debt Advice Manager, said: “We have also seen a steady increase in the number of clients who have approached us for advice having previously entered into an Individual Voluntary Arrangement (IVA) which failed due to being unaffordable. It isalarming that clients often seem unaware that when entering an IVA it is a form of insolvency and it is even more concerning that the payments required on some IVAs lead clients to fall behind on priority bills such as rent. We urge people to get in touch for free, impartial advice before things get critical.”

Read the Community Law Service Annual Achievements 2023-2024 Report in full: https://bit.ly/CLSAnnualReview24.

Get in touch by calling 01604 621038 or emailing [email protected]