Charting our 25-year slide into the RED; FOR 25 years Joe Michna has been on the front-line on Teesside dealing with residents' debt problems. Here he tells the Evening Gazette's SANDY McKENZIE about the explosion of debt among people in the area and the how the way debt advice is given has become much more professional.

Byline: SANDY McKENZIE

AVERAGE debt for clients seeking help from a Teesside advice bureau has multiplied by more than 20 times in the past 25 years.

Joe Michna, the manager of Hartlepool Citizens Advice Bureau has witnessed at first hand the huge change in the personal financial circumstances of people approaching the CAB for help.

And in his front-line role dealing with clients with debt-related problems, he has also seen how the debt advice service has become much more professional.

Mr Michna began his involvement with the CAB service in 1984 as a volunteer advice worker at the Middlesbrough CAB.

He did four years as a volunteer before moving to Hartlepool CAB, firstly as deputy manager and from 1990 as manager.

In 1984, there were very few CABs that had paid money advisers or debt advice workers.

Almost all of the help given to clients with debt-related problems was done by volunteer staff.

Very few of the clients who approached the CAB for help 25 years ago had total debts of more than pounds 2,000 or pounds 3,000.

Mr Michna said the average debt per client in 1984 was probably less than pounds 1,000. The number of people approaching the CAB with debt problems was about 10% of the total number of client inquiries they dealt with.

Very few people in 1984 had credit cards or other pieces of plastic to obtain money or credit and the majority of clients did not even have bank accounts.

He said the CAB at that time would not have dreamed of giving advice and assistance with personal bankruptcy.

That type of advice and assistance was seen as way beyond its competence and capability.

The majority of CAB clients with debt problems in 1984 were tenants rather than people who owned their own properties.

Mr Michna said in 1984, money advice was not really seen as a "profession or vocation" and the resources available to help and assist clients were pretty basic.

Significant changes over the past 25 years listed by Mr Michna include: * Money advice is now seen as a "profession" and requires a great deal of skills and expertise; * CABs generally have much greater paid staff resources to deal with clients in debt. Many CABs have contracts with the Legal Services Commission to provide Debt Advice services -that would have been unheard of 1984; * For some CABs, as many as 45% of all of their client enquires are about debt; * The average client debt has soared from less than pounds 1,000 in 1984 to pounds 20,00 in 2009. It not unusual for clients to approach a CAB with personal debts of pounds 50,000 or more, and * Giving advice and assistance with personal bankruptcy is now a common feature of the work done by CABs.

Money advice workers now also have their own Institute of Money Advisers (IMA) and Janet Noble from the Hartlepool CAB recently won the prestigious Money Adviser of the Year award which delighted Mr Michna and all the Hartlepool CAB staff.

Mr Michna said: "In 1984 I could never have predicted either the number of people in debt now or the levels of debt some of these people have.

"In 1984 the very first debt case I dealt with was for a couple with pounds 450 worth of debt one of my money advisers recently gave advice and assistance to a couple with total debts of over pounds 100,000.

"I would not have easily foreseen how the availability of credit would increase and the number of options that some people would have including arranging loans over the telephone and on the internet.

"Nor would I have imagined for a moment that some people would have up to 15 or even 20 pieces of plastic in their wallets which they could use for obtaining credit."

Then and now 1984 2009

A couple with two children who are council tenants. They have rent arrears of pounds 200 and two other debts of pounds 300 and pounds 400. Their total household income was pounds 110 a week. The Bureau helped them to negotiate reasonable repayment schedules on all three of their debts giving priority to the rent arrears A couple with two children who own their own home and have an outstanding mortgage. They have personal debts to the value of pounds 85,000 owed to 16 different creditors. Their household income was pounds 2,000 a month. The Bureau helped them draw up a Financial Statement and also assisted them with coming to affordable repayment proposals with all of their creditors.

CAPTION(S):

ESCALATING PROBLEM: Debt has risen rapidly on Teesside causing financial hardship and leaving many without cash in their wallets Picture posed by model In 1984 I could never have predicted the number of people in debt now or the levels of debt some of these people have - Joe Michna, left, Hartlepool CAB manager Picture by IAN COOPER