The Salvation Army is urging candidates in September’s House of Keys general election to commit to major reform of the island’s personal debt system.
It warns that outdated laws are leaving vulnerable people with no realistic way out of unmanageable debt.
The charity says its Debt Advice Service is now supporting cases worth more than £2 million, with rising living costs pushing more households into long‑term financial difficulty.
It wants government to progress phase three of insolvency reforms, introduce a modern legal framework for resolving personal debt, and ensure enforcement distinguishes clearly between people who cannot pay and those who will not.
Debbie White, the Salvation Army’s area debt advice co‑ordinator, said the current system traps people in hardship because bankruptcy is not accessible on the island.
Policy analyst Josh Adcock added that outdated laws mean “no amount of budgeting can bridge the gap” when essential costs exceed income.
The charity, one of only two debt‑support avenues on the island alongside the Office of Fair Trading, says demand is rising and cases are becoming more complex.
Its FCA‑regulated service offers one‑to‑one support, budgeting help and negotiation with creditors.
Anyone worried about debt or struggling with bills can contact the Salvation Army on (01624) 675702 or email iomdas@salvationarmy.org.uk.
