Call for a public-private task force to help people facing debt problems

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Insolvency Practice Creditfix urged the private, public and third sectors to create a task force to help the millions of people facing debt problems due to Covid-19.

Together with its sister company in Scotland, Carrington Dean, the company analyzed 22,500 of its UK customers to produce its Covid-19 Debt Analysis: Insight and Trends report.

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The study found a sharp increase in the number of people with higher incomes seeking debt arrangements that would protect assets such as their homes and cars.

The number of customers entering a debt solution with a combined income and assets of £ 55,500 or more increased by 30% from September to April of last year at the same time this year.

During the second and third quarters, the debt of the self-employed also increased by 20 percent year-on-year.

Therefore, Paul Mason, CEO of Creditfix and Carrington Dean’s parent company, Finbora Group, said collaboration is needed to create a task force to help people facing Covid-induced debt issues. 19.

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“The uncertainty that Covid-19 has engendered in socio-economic terms presents a real and tangible threat to how people will adjust financially to the yet-to-be-realized fallout from the pandemic,” Mason said.

“This crucially includes their health, well-being and well-being.

“There is also heightened concern over the management of utilities and the frontline third sector, as the virus has already taken a heavy toll on resources.

“This could be taken to the ultimate limits as they deal with fluctuating levels of new cases and therefore have a ripple effect on other support services.

“As a result, it is fundamental that there is more cohesion between the private, public and private sectors and a working group is essential to put in place joint emergency plans to ensure that people receive support as they progress. and as they need it.

“From debt advice to third party support networks, the private sector is well positioned to provide support to the public sector. “

The Creditfix report cited figures from a YouGov survey which showed that 32% of people were more concerned about the effect of the pandemic on their income than losing a loved one (30%).

The poll also found that more than 20 percent feared losing their jobs and not being able to find one.

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“The coming months will likely be more revealing with the end of the holiday regime and unpredictable restriction measures, combined with winter and the temptations to overcompensate at Christmas, among the key factors,” Mason said.

“There are serious concerns about how long financial uncertainty can be maintained and the impact this may have on individuals and families across the country.”


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