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Debtbusters Going Gangbusters

December and January are traditionally slow months for Debt Counsellors.

In December everyone is ignoring their debt and telling themselves they will take care of things next year (they just want a fun holiday first) and in January (sometimes called Januworry) consumers are just trying to stay afloat and drain every last cent of credit they have to do so.

So, January is traditionally a slow time for Debt Counsellors. Many take some of the month off as an annual break knowing that applications for help will not be rolling in in large numbers.

This is why it is interesting that Debtbusters are reporting a 32%  spike in applications for help in Jan 2022 compared to Jan 2021.

‘January is traditionally a slow time for Debt Counsellors’

Now January 2021 was a strange time. A time of mixed optimism and consumer hesitancy over the unsure future. This played a roll in the number of people who called Debt Counsellors a year ago during January. Numbers were not great but still many Debt Counsellors reported that they had seen higher than expected numbers last year Jan. One of those companies was Debtbusters.

‘Debtbusters are reporting a 32%  spike in applications for help in Jan 2022’

Debtbusters are a really big practice with dozens of Debt Counsellors who all work together under one roof to assist consumers. They are a well known and award winning practice who are one of the industry leaders (some would argue the industry leaders). They belong to the National Debt Counsellors Association who represent only the largest debt counselling practices in the country. With tens of thousands of clients what happens at Debtbusters is often a thermometer for what is happening elsewhere in the industry.

This is why it is interesting that Debtbusters are reporting a jump in applications for help this year Jan. What it indicates is that a significant number of consumers are breaking the pattern of holding back in Jan and rather only getting help in Feb (though this will still happen of course).

More Debt, Fewer Accounts

Debtbusters also shared stats during their presentation about National Debt Awareness Month that show that consumers, who are entering debt review at present, have less debts numerically but that the value of this smaller number of debts is bigger than ever before. So, consumers are getting into trouble sooner than in the past (with fewer creditors). Not a great sign.

It is, however, a positive sign that consumers are starting to get help sooner rather than later. If a consumer gets a letter threatening to start legal action they have only a few days to enter the debt review process or things get complicated and some debts can be paid via debt review and others slightly outside the normal debt review process (with some negotiation by the Debt Counsellor).

Get Help

If your debts are piling up, don’t wait for scary letters and court summonses. Take action now and proactively talk to a professional Debt Counsellor about all the options you have to deal with your various debts. With interest rates shooting up, petrol prices going up and up and electricity poised to jump, you may soon find it impossible to make ends meet without help. So, get help and do so sooner rather than later. It seems many other people are.