People who approach Chartered Accountants’ Benevolent Association for help with debt problems have as many as 24 unsecured creditors each, according to newly compiled information.
The average number of creditors is closer to 12, CABA believes, a figure likely to include a variety of credit card and loan creditors but excluding mortgage arrears.
CABA is regularly approached by chartered accountants for help with debt issues, and sees a wide range of money problems among members of the profession.
Helena Coxshall, Head of Operations at CABA, said: “We are contacted for help with many kinds of debt issues. At one extreme, there are older accountants without adequate pension provision who are having trouble making ends meet, or people running small practices who are suffering in business terms following the recession.
“At the other extreme, there are those earning considerable salaries but who simply live beyond their means, often because they feel that they have to be projecting a certain kind of lifestyle that they cannot really afford.”
Helena added that chartered accountants tended to be good at keeping their real level of debt hidden, often by building up multiple large credit card debts.
She said: “Many accountants who approach us are in denial about how much they owe but do know that they are in trouble. They reach a point where they are facing more debtors, who are becoming more aggressive, and they come to CABA for help.
“If we have one piece of advice to accountants facing debt problems, it is to seek assistance earlier. Many wait until they are in real trouble but, if your level of debt increases more than a couple of months in a row, you could already need help.”
Helena said that the first task that CABA undertook in these situations was to sit down and work out an accurate picture of the individual’s level of debt as the first step in a process of constructing a structured debt plan.
She said: “Often, we refer to the process of building up a picture of someone’s debt as ‘peeling the onion’ because there tends to be layer upon layer upon layer.
“However, once we have done this, we can start to negotiate with the person’s debtors where appropriate and put together a plan to get them back on their feet financially, usually running over a number of years.
“It is pleasing to see the effect that this has on someone’s life. Frequently, debt problems are affecting everything from their health to their relationships. Having a structured debt plan to resolve the issue takes some of the pressure away.”
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