A Christian charity has welcomed the abolition of a fee which can sometimes outprice people  from going debt free.

In the latest Chancellor’s Budget, Jeremey Hunt, revealed that the £90 administration fee for debt relief orders would be abolished.

A debt relief order is a way in which people can apply for help with debts if they have no money and nothing of value to sell, often seeing them written off.

But previously, a fee had to be paid, with debt charities pleading for this to be removed, saying it was pricing people out of going debt-free.

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Sam Wolstencroft, a branch manager for Christians Against Poverty in Bolton. said: “People can go through big bankruptcy or a small one which is a debt relief order.

“You can only go on this if you are on a very low income and disposable income.

“For some people that £90 would stop them from going debt free.

“They would need that £90 to go and get debt help and if the solution is to get the debt wiped so they have a fresh start, it would stop them from doing this.”

A debt relief order can also not exceed £30k and those applying must not own homes or big things of value.

Sam said: “Whenever a client would come to us and could not afford it, we would partner with this organisation called Acts 435 which is a great charity.

“The abolition of the fee is going to stop people from living under that weight of suppressive debt and the joy that comes when they realise, they can start again, is amazing.

“I think there is a chance there will be more debt relief orders as a result of this, but I don’t think this is a bad thing because people who are eligible are by definition, the ones on the lowest incomes and have had a tough time and need support.

“In my working world, it was everywhere that this had been abolished and we are happy.”

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The Citizens Advice Bureau said the news would mean people could finally be debt free after admitting, nine out of 10 people they help, stumbled at this hurdle.

Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “These unaffordable fees have priced people out of getting the support they need as 9 in 10 people with a DRO struggled to pay the upfront cost.

“The Chancellor’s action is very welcome and will mean more people can find a way out of debt.”