Debt Awareness Week: Tackling the stigma around discussing money problems

Last year, StepChange Debt Charity says it received 620,000 contacts and supported over 180,000 people with full debt advice.

Debt problems often come to a head at the start of the year – and in January alone, StepChange provided full debt advice to over 19,000 new clients – the highest number it has recorded since before the pandemic.

While some people may have been tipped into debt by a particular event, such as a job loss, the everyday struggle with living costs is a common theme seen by the charity.

Nearly a quarter of StepChange clients cite the increased cost-of-living as their reason for facing financial difficulties.

The average debt held by StepChange clients is just under £15,000. Those struggling with energy bills have just over £2,000-worth of energy arrears, on average.

The findings echo YouGov research in January commissioned by charity Christians Against Poverty, which found nine per cent of UK adults had been mainly using credit in the previous six months to cover monthly bills.

Simon Trevethick, head of communications at StepChange, says: “The rising cost-of-living does not discriminate and people right across Britain are facing the squeeze as rents rise, mortgage costs increase, and the price of everyday essentials grows.

“This Debt Awareness Week, we want to address some of the barriers which may stand in the way of people accessing free debt advice when they need it.

“Whether it’s stigma or embarrassment, mental health issues, lacking time or worrying about the impact on future finances, there are a myriad of reasons why people may be hesitant to get help if they’re in a tight spot with their finances.

“However, the fact is you’re not alone, and free and impartial debt advice is there to support you regardless of your circumstances or how your debt came about.”

Trevethick says StepChange clients can do their whole debt advice session online, with advisers also available over the phone if needed.

He adds: “Getting free debt advice will involve an expert look at your finances, with a recommendation of how to get back on track. You’ll set up a full monthly budget that will take a detailed look at your finances, and will be advised on the most sustainable way forward to deal with your debts. Taking that first step can be difficult, but it doesn’t have to be.”

For some people, debt can interact with mental health issues, making problems even worse.

Conor D’Arcy, interim chief executive of the Money and Mental Health Policy Institute, a charity founded by consumer champion Martin Lewis, explains: “Debt problems and poor mental health are closely linked. One can exacerbate the other, creating a really vicious cycle.”

For those struggling with your mental health, D’Arcy says, “It can be hard to do the basics in life, never mind trying to figure out what to do about your debt or speaking to someone about it.

“Mental health problems can also make it much more difficult to earn money, to stay on top of bills, and reach out for help.”