DEBT agencies in South Yorkshire are bracing themselves for an upturn in inquiries following the controversial abolition of the 10p starting rate of income tax.
They say the first pay packets affected by the change will only just have gone out - but the ticking timebomb will start to do its damage a few months down the line.
And that could see a big upturn in South Yorkshire of people reporting debt probl
ems as they struggle to cope.
Do you have a debt crisis or credit crunch story to share? Let us know by adding your comment below, emailing us at starnews@sheffieldnewspapers.co.uk or calling The Star news desk on 0114 276 7676.Alexa Walker, of Sheffield CAB Debt Support Unit, added: "People who are on the breadline only need to suffer a small drop to their income to really start to have difficulty with repayments.
"We are envisaging getting a lot of clients coming back to us about this tax change. Our advice services are already stretched to the limit and we will struggle if there is an upturn in numbers.
"Interest rates are already a lot higher than when many people took them out two or three years ago. It is all adding up to an unsustainable situation."
John Lomas, aged 51, of Southey Crescent, is one of those who has lost out due to the changes.
The former school caretaker struggled to get by on his monthly budget of £400, which has now dropped to £380. John said: "If I am honest I think it is disgusting that they have altered it. I have taken early retirement through ill health and I find it hard to live on my pension.
"With the abolition of the 10p rate last month I came out with £20 less. That is quite a lot when you are living off a pension. And it is Labour that is doing it as well.
"They are supposed to care for the working classes. It is a struggle to make ends meet.
"These MPs are on fancy wages and all the perks. If it were up to me I would pay them buttons."
Tony Wilkinson, owner of the Barnsley-based UK Consumer Debt Line, added: "I have no doubt that the effects of this tax change will be felt a few months down the line.
"At the minute though people are talking more about rises in utility bills and fuel costs. We even have people still asking us about Northern Rock.
"But this certainly will affect people."
For free confidential help call UK Consumer Debt Line on 0845 658 6606, email
info@ukconsumerdebtline.com or
click here.
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