Debt Relief Orders help more than 700 people in Newark and Sherwood says National Debtline, as £90 fee set to be scrapped following government’s spring budget
According to newly-published official figures more than 700 people across the district have applied for a Debt Relief Order in the last ten years.
National Debtline is predicting that many more Newark and Sherwood residents who are in financial difficulty will soon become eligible for Debt Relief Orders, ahead of 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 — offering eligible people a fresh start by writing off unmanageable debts after 12 months.
Analysis of new figures published by the Insolvency Service shows a total of 701 people in Newark and Sherwood have applied for a Debt Relief Order in the past decade.
Changes announced in the government’s spring budget will remove the long-standing £90 fee to apply for a Debt Relief Order from this Saturday (April 6) onwards.
From June 28 further changes to eligibility rules will come into affect, including 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.
Separate findings from the government-backed Money and Pensions Service suggest that 13% of Newark and Sherwood residents are in need of debt advice right now, which National Debtline says shows the continuing impact of the cost of living crisis on families.
National Debtline provides free, independent debt advice over the phone and online, and is also able to register people who are eligible for a Debt Relief Order where this is the best option for them.
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% of Newark and Sherwood 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.
“With welcome changes to Debt Relief Orders starting from this month, this option will now become available to more people who are unable to repay what they owe.
“Whether or not you are eligible for any particular debt solution, there is always something that National Debtline advisers can do to help, so I would urge anyone struggling to get in touch straight away.”
Eight in 10 callers to the service last year saw their debts reduce or stabilise after receiving free advice from an expert adviser.
Anyone worried about their finances, in Newark and Sherwood or elsewhere, can speak to a National Debtline adviser for free, independent advice over the phone on 0808 808 4000, or by visiting the National Debtline website.
