MORE than 500 people in Redditch have applied for a Debt Relief Order in the last 10 years, according to newly-published official figures highlighted by the free National Debtline advice service.
National Debtline is predicting that many more Redditch residents who are in financial difficulty will soon become eligible for Debt Relief Orders, ahead of “welcome” changes starting this month.
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.
National Debtline’s analysis of new figures published by the Insolvency Service shows a total of 949 people in Solihull have applied for a Debt Relief Order over the last 10 years.
Changes announced in last month’s Budget will remove the long-standing £90 fee to apply for a Debt Relief Order from April 6 onwards.
Further changes to eligibility rules from June 28, include an increase to the maximum level of debt applicants can have from £30,000 to £50,000.
National Debtline says that these changes will mean Debt Relief Orders will become an option for many more people in future.
Steve Vaid, Chief Executive of the Money Advice Trust, the charity that runs National Debtline, 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 13 per cent of Solihull residents in need of debt advice now, our message 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.”
Visit www.nationaldebtline.org for more information.
