193,000 people in Wales are facing severe debt, says AM

ALMOST 200,000 people in Wales are facing severe debt problems, says Huw Irranca-Davies.

The Ogmore AM paid tribute at the National Assembly to the “crucial role” of organisations like CABx, StepChange and Christians Against Poverty in providing debt advice.

He said a recent report showed that in Wales, single parents are significantly over-represented among the clients of those organisations and that the biggest cause of slipping into debt is disruption of income.

Mr Irranca-Davies said: “We often find families who are just one event away from being cast into debt.

“Over half of new clients in Wales are behind on at least one household bill after receiving debt advice.

“That’s how critical the financial pressures are. Based on general polling, there’s an estimate that around 8% of adults living in Wales are facing severe debt problems compared to around 6% of the UK adult population.

“That’s around 193,000 people in Wales in severe problem debt.”

Mr Irranca-Davies says there has been a fall in the number of people faced with short-term, high-cost debt loans from 17% in 2014 to 10% now.

He told AMs that is in part due to regulatory interventions by the Financial Conduct Authority and the withdrawal of some rip-off high-cost credit firms, whom he described as “sharks”, from the market.

Mr Irranca-Davies believes a debate at the Assembly would allow AMs to explore what more can be done to provide aid for debt advice organisations and to support responsible lending through organisations like credit unions.