Welsh group follows Irish model for tackling debt problems

SUCCESSFUL structures set up to address the problems of debt in Cork are to be copied by a Welsh organisation.

Representatives of the Debt Redemption and Money Advice (DRAMA) scheme, which is funded by the Welsh Coalfields Regeneration Trust, are this week visiting the MABS (Money Advice & Budgeting Service) and credit unions in Cork to establish new systems to tackle chronic debt.

Bill Hudson, a spokesman for the Welsh group, said the organisation was trying to match money advisors with credit unions to help get people out of chronic debt situations - as has been the case with Cork MABS which was founded as a pilot scheme by the late Brendan Roche in 1991.

Mr Hudson said that support mechanisms put in place by MABS were of considerable interest to his organisation, who have representatives on the trip from Swansea, Cardiff and Pontypridd.

“We are also interested in the Government support you have and we’d like to get the Welsh Assembly more involved,” he said.

Mr Hudson said that personal debt had increased significantly in the Welsh valleys due to major coal mine closures.

Denis Corbett, manager of Cork MABS, said that his advisors took on around 1,000 new clients every year. He said that while illegal moneylenders were still out there and posed a problem, more and more people were getting into debt with banks and building societies.

The Welsh delegation said they were experiencing a major problem with young people running up huge credit card debt.

Cork MABS chairman Tom Walsh said this problem was already being experienced in Ireland and warned young people to avoid them.

He said businesses were “giving them out to beat the band.” Mr Corbett said his advice to Christmas shoppers is leave their credit cards at home, otherwise the temptations to spend are far too great.