Stuart Parkin from Kensington Financial Management Consultants, one of the UKs leading debt management companies, has seen a dramatic 40 per cent increase in the number of new clients in the last six months, but disagrees that the advice agency is swamped. For him, things have simply got busier but with the right investments in staff and technology, the company is stronger and more efficient than ever.
Waiting game
The credit crunch has left thousands unemployed or without their homes, with mounting debts to pay off. Many are struggling to manage these unexpected changes in circumstances and are consequently turning to debt advice agencies for help. It is reported that some advice-seekers have been left waiting up to eight weeks for help and Parkin says that this is particularly true for agencies who give face-to-face advice, as they often do not have the staff to meet the demand.
According to Credit Action, the average household unsecured debt in the UK for people using credit stands at a staggering 21,457 and during July, one person was declared bankrupt or insolvent every 3.97 minutes, so it's not surprising that these companies are experiencing a surge in demand during these troubled times.
The Citizen's Advice Bureau has also seen a rise in the number of debt-related enquiries, especially regarding mortgages and unemployment.
Moving with the times
Kensington Financial Management Consultants has responded to the demand quickly and efficiently, by increasing staff from 100 to around 200 and investing in training and development. The recession has also driven the company to make improvements in IT and telephony, as customer focus becomes ever more important.
These improved processes mean that the companys service levels to customers and creditors are better than ever. Client retention is at a record-high level with a targeted attrition rate of only 2 per cent.
The company has gone from having 900 new clients per month six months ago, to 1500 and as a result has extended opening hours. It now operates 7 days a week from 8am to 9pm with the average call waiting time standing at only 20 seconds.
For those clients who dont want to use the service but would like advice on becoming debt-free Kensington Financial Management Consultants has launched a self-help guide to dealing with creditors, which many have used to help themselves regain control of their finances.
With head office in Trafford, Manchester, the company was created in 2003 with the aim of providing support and advice to consumers across the UK who are struggling with debt difficulties. Services include Debt Management, IVAs (Individual Voluntary Arrangements)
