The scrapping of a £90 fee to submit a Debt Relief Order will help more than 150 Islanders a year, who already find themselves in significant financial hardship. A Debt Relief Order is a way of dealing with debt that is designed for people with low incomes and few assets – and can give people who are eligible a fresh start by writing off unmanageable debts after 12 months. From Saturday (6th April), the £90 fee to acquire an order will be scrapped by the Government. Further changes to eligibility rules from 28th June will include an increase to the maximum level of debt applicants can have from £30,000 to £50,000. Figures reveal that 1,640 people living on the Isle of Wight have applied for a Debt Relief Order in the last 10 years, meaning around 160 people a year – if not more – will benefit from this change. According to the government-backed Money and Pensions Service, 11% of Isle of Wight residents are in need of debt advice right now. National Debtline, which provides free, independent debt advice over the phone and online, is urging anyone on the Isle of Wight who is struggling to seek free advice by calling 0808 808 4000. The charity has further information about Debt Relief Orders at www.nationaldebtline.org/debt-relief-orders. Steve Vaid, Chief Executive of the Money Advice Trust, the charity that runs National Debtline, has said:
“Millions of people are feeling the impact of the cost of living crisis, and for many the effects have left deep financial scars. With 11% of Isle of Wight residents in need of debt advice now, our mesage to anyone worried about their finances is to seek free advice from National Debtline as soon as possible. “No one has to face their debts alone – our expert National Debtline advisers are here to help, and will work with you to make a plan to tackle your debts. “And with welcome changes to Debt Relief Orders starting from this month, this option will now become available to more people who are unable to repay what they owe. Whether or not you are eligible for any particular debt solution, there is always something that National Debtline advisers can do to help – so I would urge anyone struggling to get in touch straight away.”
This is just a side effect of Tory rule. Every single time they come to the end of their disasterous terms in power, millions are right up against it financially, socially and most people are just a couple of pay packets away from a financial crisis, more and more people have to go down this route. This time it will be different because no matter what Tory voters will tell you the conservative party is now a spent force and won’t even be able to form an opposition when Labour take the helm. I know working families who still have to make hard choices each month when they can’t make ends meet. Thankfully this horrific government is now fast running out of time, for good.
Another whinging leftie who doesn’t believe in self responsibility, always blaming someone else for their own financial mess.
I understand why,but if you are in debt of £50,000 and then get this order the creditor gets nothing placing them into financial difficulties. Why scrap the charge ?. £90 to get out of paying thousands!. If 150+ get their debt up to £50,000 that’s 3/4 million loss to others. This will have to be then added to everyone else’s bill’s to cover,so utilities will increase, insurance, cost of credit, mobile phone and consumables etc.
If you’re in debt for £50,000 to one creditor then more fool them. They should check the liquidity of the people they are lending money or services to, instead of just throwing it at them.
You’re presuming the equivalent of small businesses. In reality the debts are to mortgage arrears, credit cards used to make payments, and general living expenses. They don’t lose; we all pay eventually via price hikes. I almost think that’s why they push people into poverty in the first place…it generates more indirect income for them. And they really aren’t suffering.