Downturn sees more seeking advice

The economic downturn is having a big impact on citizens advice bureaux.

Nationwide the bureaux saw a 31 per cent increase in clients experiencing financial difficulty in the six months to December 2008, compared to the previous six months.

Kerry Dalton, chief executive of the NZ Association of Citizens Advice Bureaux, said the increase had largely been driven by people looking for options when they were facing insolvency.

Clair Teal, a manager at the Wellington bureau, said staff had noticed a sense of despair among clients seeking information about bankruptcy.

"These are clients who feel that there are no alternatives available to them other than relinquishing their ability to travel and have a good credit rating because they are so in debt," said Ms Teal.

"They are trying to get on with their lives and improve their lot but their financial situation is making this really difficult."

Bureaux in other areas were reporting cases of people suddenly being made redundant and being faced with mounting debt, people losing income from investments and looking at bankruptcy, and people struggling to pay their mortgages.

Ms Dalton said there was also a 9 per cent increase nationwide in people coming to the Citizens Advice Bureaux seeking assistance from food banks.

In Citizens Advice Awareness Week this week bureaux throughout the country are making a big push to ensure that people know that they can approach the bureaux with any question or issue.

In calendar 2008, bureaux assisted with 659,385 client inquiries across the gamut of issues that affect people in their lives.

The bureaux are in 90 communities throughout NZ and have a nationwide free phone number 0800 367 222.

- NZPA