No shame in seeking help if you’re in a financial fix

DON’T LET THE STIGMA OF BEING IN DEBT STOP YOU FROM GETTING SUPPORT, SAYS TRICIA PHILLIPS

THE cost-of-living crisis is the cause of debt for more than one in five people turning to a leading debt charity for help.

Financial problems are something many people experience at some point in their lives.

Yet it’s not always spoken about openly because of the stigma that surrounds it and the perception that debt is caused by mismanagement of money.

Until recently, StepChange Debt Charity clients most often experienced debt because of a change in circumstances in their lives that led to a drop in income, such as redundancy, ill health or bereavement.

However, new data from the charity shows that since June this year the rising cost of living is now the most commonly cited reason for debt among new clients.

Recent soaring energy costs and rising inflation have meant conversations around money and debt are becoming more common.

Council tax remains the most common type of arrears, and energy arrears are high with a third of people behind on their electric bills, while a quarter are behind on gas bills.

Almost two-thirds of people have credit card debt, nearly half have loans, a third have overdrafts and similar numbers catalogue debt. One in 10 people have payday loans and other high-cost credit debt.

Research both from charities and from the financial regulator, the Financial Conduct Authority, suggests that people don’t always know where to turn if they are experiencing debt, and feelings of shame or embarrassment too often cause them to wait a significant amount of time before getting help.

StepChange research shows that more than half of its clients waited more than a year before seeking help with debt, but more than nine out of 10 wish they’d got help much sooner.

StepChange often speaks to clients who have waited a long time before seeking help with their debt, and overwhelmingly find that the impact of waiting is increased stress and anxiety.

Richard Lane, the charity’s director of external affairs, says: “We know how difficult it can be to talk

We would urge anyone feeling stressed about their financial situation not to wait to get help Richard Lane from StepChange

about money problems and debt, but opening up to someone can change everything, and so often our clients talk about the improvement in their mental health and sleep after going through advice.

“This winter is going to be challenging for millions of households, with more and more people who have never experienced debt before worried about how their finances are going to cope.

“We would urge anyone feeling stressed about their financial situation not to wait to get help.

“A charity like StepChange can offer free, non-judgemental debt advice which is tailored to your personal circumstances.”

The cost-ofliving crisis is one reason people are struggling financially