Debt Advice

Debt is a huge problem in our society the total UK personal debt at the end of May 2010 stood at £1,460bn.

An average household debt in the UK is ~ £8,716 (excluding mortgages). This figure increases to £18,159 if the average is based on the number of households who actually have some form of unsecured loan. Every 13.4 minutes a property is repossessed and every 51 seconds someone will be declared insolvent or bankrupt.

Debt is a huge problem and somehow the Church needs to respond because it is wreaking havoc on peoples lives.

From September 2010 New Life will be partnering with Derby City Mission to launch a Basics Bank to help those who are trapped in a debt cycle, and provide clients with some help to breakout.

Basics Bank’s mission is to serve those on a low income by providing free debt advice, and food parcels for those who need it.  This is what we will be doing:

• Walk-in, no appointment clinics held every week.
• Prepare a financial statement, and sort debts into priority and non-priority.
• Income levels are checked and we will make sure that benefits are maximised.
• Negotiate affordable repayments with creditors.
• Check that the clients are using the most suitable means of payment.
• Apply, on our clients behalf, to various Trust funds to pay for energy or water arrears.
• Support our clients on an ongoing basis.

Derby City Mission will be providing us with a debt advice worker called Sharon Cullen, who will provide the expertise required to help the clients through the hard work involved in sorting out the necessary paperwork.

But that is not all we want to do, we want to create the friendliest, most welcoming environment we can for the clients of Basics Bank.

This is where you come in, could you give yourself to helping Basics Bank become the most successful it can be?

We want people to be free from debt and free to live a new life in Christ and part of the family of God, you can help that process by being a smiling face, bringing a cup of tea, a piece of cake, chatting with clients as they wait,  helping the clients with their children [if needed].

What is your part to play in helping alleviate debt and poverty? Every small part that someone plays moves us further towards seeing the grip of debt and poverty loosened in the 21st century.

Please contact the General Office if you would like to help with Basics Bank from September 2010. If you feel Basics Bank could help you with your debt then please contact the General Office on: 01332 349056

Statistics taken from www.creditaction.org.uk [Thursday 1 July 2010].