Press Release
MP Seeking Assurances On Spiralling Debt Problems
Local MP Tom Clarke expressed his deep concern, on the high incidence of constituents who are falling into the trap of growing debt and its impact on families. The problem has become exacerbated of late as parents with very young children have had their bank accounts frozen, by the actions of Sheriff Officers.
Mr Clarke said:
“Consumer debt enquiries through my office are certainly on the increase. In the main constituents on very low incomes sometimes wholly dependent on state benefits are being left with no money to look after their children, as their bank accounts are frozen by Sheriff Officers. It has now reached the stage where I have no alternative but to request a meeting with Sheriff Officers in an effort to clearly establish whether the rules that govern this process are being applied correctly”.
“Debt difficulties are obviously most prevalent amongst households on low incomes where there is limited scope in terms of finding solutions. However it is by no means peculiar to that group alone, it stretches right across all income groups. Generally the position is that 57% of households have no problems, 31% struggle from time to time and 12% have difficulty managing their commitments. A small but significant group of 1.6% of people are in trouble and really struggling. And this is the group that I am trying to help”.
“Irrespective of how much debt is owed no family should be left in dire poverty, impoverished to the extent that they have no money to feed their children. After all State Benefits are paid to provide a safety net, it is the minimum income paid to alleviate families from poverty, and in such circumstances they should not have their bank account frozen and denied access. Parents are so worried that when this happens they are panicked into a repayment arrangement which may then lead to them into an upward spiral of increasing debt.”
The MP continued: “Traditionally the situation is always particularly desperate after the Christmas period. More and more people seem to rely on credit and store cards, with the constant barrage of advertising for ‘must have’ goods which finds a ready market among low to medium income families. As one constituent remarked to me, ‘They offer you an umbrella when the sun shines but take it away when it’s raining.”
“Young people are incredibly vulnerable too as they have little or no experience of how quickly debt can creep up on them. They find the glossy marketing techniques of ‘brand names’ irresistible and spend colossal sums of money on designer outfits, that are soon out of fashion”.
The MP concluded by saying: “A recent survey revealed that a staggering 75% of couples find money the hardest subject to talk about. In my view there is no shame in having affordable debt but failing to deal with debt can lead people into a very embarrassing and often distressing situation. In the meantime I will be making the strongest possible representations to Sheriff Officers on behalf of constituents who are seeking my help.