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OFFICIAL: Sharp rise in serious debt problems in Gibraltar
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Although the world economic crisis may not have hit Gibraltar with the same severity as in some other places, there is no doubt that the rosy picture painted by the previous government may have been quite an exaggeration.
People have been suffering from loans problems, such as obtaining mortgages, there has been unofficial talk of some people not being able to make ends meet and if you take a good look about town you will find more empty shops than ever before.
Now, it is officially recognised that Gibraltar has a bad debt problem.And surely it hasn't happened overnight!
In fact, the Gibraltar Citizens Advice Bureau (GCAB) has set up a Money Advice Clinic. "This has come about as a result of a sharp rise in the number of serious debt problems being brought to the bureau," they say.
It so happens that one in five of all CAB clients need advice on debt problems. The Citizens Advice Bureau says it has become the largest single provider of free, independent and expert debt advice.
What kinds of debt problems? The bureau explains: "Consumer credit debt, including problems with credit cards, unsecure personal loans, bank and building society overdrafts, catalogue and mail order debts - remains the biggest problem areas."
Housing debt, including problems with the mortgage, secured loans, rent and utility bills arrears, are also "a fast growing problem."
The bureau adds: "Low income, combined with badly informed and poorly understood financial decisions are at the root of many of our client’s debt problems.
"People also find themselves in debt following a change in circumstances e.g. ill-health, unemployment, separation, divorce, bereavement or disability.
"For many there is still little prospect of their income increasing or their circumstances changing."
This Money Advice Clinic will give clients some hope that they can turn things around, with a solution that offers them a fresh start, lifts them out of the poverty trap, and gives them a chance to build better financial skills for the future.
This Money Advice Clinic has been set up with the help of volunteer financial advisers from the community.
The Money Advice process also aims to make clients aware of their rights and responsibilities and help them make informed choices about how to deal with any financial problem.
They add: "People often come to see us about a specific debt but in many cases they’re likely to have a number of other debts or problems. Each situation is different but the Money Advice process remains the same."
Advice is given in such a manner as to empower and enable clients to deal with the situation themselves, at least in the longer term.
The advice provided by the Citizens Advice Bureau service is "free, independent, strictly confidential and impartial and available to everyone, regardless of race, gender, disability, sexual orientation, religion, age or nationality."
2012-02-22
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