CITIZENS Advice South Hams says the percentage of Ivybridge residents coming to it for help with debt problems is almost double that in the rest of the district.

The charity, which has just released its annual report, reveals that 21 per cent of enquiries to the drop in sessions it runs at the Watermark are to do with debt, compared to just 13 per cent across the area.

The five topics on which people seek help most often are, in descending order,

benefits and tax credits, debt, relationships and family, consumer goods and services, and housing.

Citizens Advice South Hams is urging people to get in touch as early as possible if they are facing unmanageable debts. The charity says it has helped wipe out £240,000 owed by residents struggling with money problems in the last 12 months.

But, it says, seeking help early is the key to dealing with debt problems, giving a greater chance of repaying what is owed and avoiding the consequences of a last resort debt relief order.

Nationally, increasing numbers of people have been helped with a DRO since the amount of debt covered rose from £15,000 to £20,000 last October.

The orders are designed for people who have exhausted all options for repaying their debts, and will not be able to pay in the near future.

They work by pausing most debts for a year so creditors cannot chase repayment. At the end of the year, unless circumstances change the debts will be written off.

However, debt write offs can have a serious impact on people’s credit rating, making it difficult to take out more credit agreements, or even open a new bank account. So Citizens Advice South Hams is calling for people to seek help before they reach crisis point.

Manager Janie Moor said: ’If your finances are getting on top of you and you’re struggling to pay your debts it’s crucial you seek support right away. We can help you work out what you can afford to repay, and negotiate with your creditors on how you will pay them.

’We can also offer advice on how you might be able to make savings, such as switching to a cheaper energy deal or mobile phone provider.’

She continued: ’We really value the face to face service we are able to provide at the Watermark in Ivybridge. More than 50 per cent of the people we see at the Watermark are suffering from a disability or long term sickness – this is nearly three times the national average. 

’The number of people who come to us with a debt problem is much higher too - 21 per cent compared to 13 per cent for our service overall - so we know that this service is helping to reach those most in need.

’Recently we’ve seen an increase in people struggling to pay council tax, mobile phone bills and credit card debts. All too often when faced with these competing priorities people turn to an unsecured personal loan, which in fact can escalate the problem, rather than resolve it.