HUNDREDS of extra people in Blackbird Leys are pleading for help to get them out of the red in Oxford estate’s worst debt crisis in almost 30 years.

Jim Saunders, manager of the Agnes Smith Advice Centre, said more people were coming through the door owing thousands of pounds in rent, bills and unpaid council tax.

The centre, in Blackbird Leys Road, advises people on housing, debt and benefit issues.

It has helped wipe out £370,000 for people on the estate, but the real debt bill is thought to be hundreds of thousands of pounds higher.

Mr Saunders said: “Debt is a major problem in the community and makes up the majority of our casework. It’s getting to be as bad or worse than the 1970s in Blackbird Leys.

“For the majority of people it’s down to a change in circumstance.

“Maybe a partner has left them and left them with lots of debt, or there is less income coming in.

“Also, wages aren’t going up and prices are increasing.”

According to the centre’s annual report published last month, between April and September 2009, 680 clients reported debt problems.

But in the six months from October 2009 to March 2010, the number soared to 909 – a rise of almost a third.

The centre said the trend was continuing with more people taking out loans at Christmas and it was bracing itself to help more people later this month.

In July, cuts to Government funding and a lack of new grants forced the Blackbird Leys Credit Union to suspend its loan service to new customers until September.

Manager Saul Goode said: “We are going to have to pause giving out loans at the start of this month because we are well over our quota.

“I don’t know about after that yet.”

Since November 13, it has handed out more than 50 loans to local residents, ranging from £200 to £700, with a few topping £1,000, to help families manage this Christmas.

Mr Goode said: “We are trying to be more sustainable so we have been very strict and prioritised people who have been good payers and only given loans to a few new members or people with small risk factors.”

Mr Saunders said redundancy was one of the main pressures on finances, but family break-ups, reduced working hours, fewer pay rises and a rising cost of living were also factors.

He said most clients had ‘non priority’ debt, such as money owed to catalogues, loans and credit cards.

However, at least five per cent of all cases are classified as ‘priority’ debt, where a resident’s home is under threat because of unpaid bills like council tax and rent.

Between October 2009 and March 2010, the centre helped clients write off almost £370,000 in debt, mainly through debt relief orders which people can apply for if they cannot pay off what they owe.

Mr Saunders said: “We have seen marriage break-ups and divorce because of debt.

“We’ll have to wait and see what happens with the Government changes and what they finally decide to do with benefits and job cuts, then we’ll get a clearer picture of how people will be affected by debt this year.”

  • The Agnes Smith Advice Centre is open Monday to Thursday between 10am and 5pm and between 10am and 1pm on Friday.