People living in Northampton are increasingly struggling to manage their money, new statistics suggest.

In figures released by the town’s Citizens Advice branch, some 900 residents in the area have sought out guidance from the service in terms of getting to grips with their finances over the last 12 months, reports the Northampton Chronicle & Echo. Overall, about a fifth of the 4,665 people going to the office state that they are in fiscal difficulties, as together they owe a total of 10 million pounds through personal loans, overdrafts, store cards and other types of debt.

However, Martin Lord, spokesperson for the Northampton branch, reported that the region’s debt difficulties could be even more pronounced than these figures would suggest. Mr Lord asserted that “10 million pounds is the proverbial tip of the iceberg”. Consequently, it was put forward that many more people from the area may be developing problems with paying back secured loans, mortgages, utility bills and other types of financial demand.

He told the publication: “If you work it out, it’s not that much money and we could well see more. The anecdotal experience is that people’s debt is getting bigger. The number of clients approaching us has increased and the amount of debt is more than it used to be.”

Mr Lord added: “A report that we’ve produced this month indicates that many of these people have run into difficulties. They are the first victims of the credit crunch and there is evidence of these problems in Northampton.”

Although he asserted that there is not a typical person from Northampton with debt problems, it was claimed that increasing numbers of older consumers are seeking out financial help. The same was also stated about younger people who are struggling with the debts which they accrued while a student. In addition, the Citizens Advice representative stated that the level of those seeking out help with money matters tends to rise after the Christmas period. This could well be a result of more consumers facing the consequences of overspending over the festive season. Subprime lending was also put forward as an area of financial concern, as rising numbers of those who have taken out a secured loan against their property are now struggling to make repayments.

Meanwhile, Steve Thomas from the Northampton Welfare Rights Service claims that his company has dealt with people in a total debt of 7.25 million pounds over the course of this year. Just under two-thirds of such indebtedness was attributed toward “secondary” debts such as commercial loans, with a fifth being taken up by mortgage and rent commitments. Mr Thomas advised that a rising number of people are now coming under financial pressure as access to cheap loans and other types of competitive borrowing becomes scarce. He said: “They are having to manage with what they have got and are getting into difficulties.”

Those concerned that debt difficulties will impact upon their ability to manage money - and thus cut them off from competitive borrowing products - may wish to apply for a bad credit loan. Earlier this year, the Council of Mortgage Lenders (CML) reported that those considering getting a poor credit loan could well find their application has a greater chance of being successful should the Bank of England choose to continue to lower the base rate of interest. Sarah Robson, press officer for the CML, added that should borrowers keep with up repayments on their borrowing they can begin to improve their credit score, so boosting the chances of them getting a cheap loan in the future.

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