Islanders seek help for £5.5m.-worth of debt

Citizens Advice's annual report revealed that collectively the 165 money advice clients referred to them last year owed almost £5,542,744.

The figure is almost double what it was two years ago – in 2014 islanders needed help to repay £2.5m. of debt.

It has led the body to emphasise the need to revise local legislation as it campaigns for the creation of new laws to provide a 'realistic option' for personal debt relief or bankruptcy for deserving clients.

'This will not emulate the wide range of UK insolvency laws, but will instead just give a way out for those whose circumstances have changed in such a way that they may otherwise never be clear of their debt,' said manager Kate Raleigh.

Citizens Advice has been working with the Law Officers and insolvency practitioners as it consults on the need to change the insolvency law.

Helping money advice clients, who are trapped at a level of debt which they are not foreseeably able to repay, is one of its largest current projects, launched in 2014.

Mrs Raleigh believed a policy letter was being prepared to go to the States for approval.

A breakdown of the debt owed showed the largest amounts related to secured loans – £2,911,739, followed by £1,383,571 for unsecured loans.