DESPAIRING OVER DEBT?

If you’ve been struggling with your finances recently don’t lose sleep worr ying about debt – it’s time to get help and take control

One in three UK households have seen their income drop this year, according to the Money Charity, and over five million people have fallen into arrears or borrowed money to make ends meet.

When it comes to how much we owe, it’s an average of £441 more over the past year, although that figure is much higher for some, especially if finances were already squeezed before the pandemic hit.

Debt isn’t a dir ty word, and while in some cases debts can be racked up by overspending, they can often star t building up as a result of a sudden and/or unexpected change in your circumstances.

This can be anything from you, or your par tner, falling seriously ill and being unable to work, losing your job, or facing a costly divorce. And while finding yourself homeless may sound far fetched, if you have to move out after splitting with your par tner, and they own the roof over your head, it’s easy to see how savings can rapidly drain away as you face a sudden and uncer tain financial future.

Even within relationships, more of us now keep separate finances, including solo bank accounts, and four in ten of us admit to hiding money worries, including debts, from our par tner according to the Money & Pensions Ser vice.

If you’re the one facing sleepless nights and worrying about how to come clean, money worries are nothing to be ashamed of. However, there’s no easy way to broach the subject and there may well be rows and tears, but telling your par tner means that hopefully you will have their help and suppor t going for ward.

If you suspect a member of your family is struggling financially but too embarrassed or proud to admit it, tr y and find a way to tackle the subject and of fer to go with them to seek help and debt advice. If you’ve got savings it may be natural to want to help them financially, but tread carefully or you could be left struggling yourself if they can’t repay the money as agreed or it later causes a family rift.

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