Changing the language around debt is important to get people reaching out for help - Vikki Brownridge
What do you get if you cross a roomful of bankers with the UK’s leading debt advice charity? There are probably many punchlines you could invent. The reality, though, is a lot more consensus than you might expect.
At StepChange, we hold an event in Leeds every year for our funders, partners and financial services sector partners. This forum provides the opportunity to update them on what we’re up to and stimulate cross-sector debate on ways to improve the environment for people experiencing financial difficulty. The truth is debt problems remain a scourge on our society, but working across various sectors can help break the stigma and taboo, and this year’s StepChange Connected provided clear takeaways to reflect on.
One of the biggest game changers in town for managing problem debt is the rapid ramping up of how we are all using digital technology. Complex though it is, in our world of financial services, it has the potential to do so much good for people.
For example, today’s digital environment is already helping to make the journey into and through debt advice easier. It can identify the points at which people are most likely to struggle, and offer targeted support at those points. We’re already using big data to spot trends and identify new ways of managing the risk of debt. And like so many organisations, we are all learning how to harness AI to deliver better and more targeted help, and we’re working on how best to share information so that we can support customers better.
Bringing together the various stakeholders led to naturally one wider discussion of how we can do more to support those that need it most. It was clearer than it’s ever been that collaboration between the financial sector and the debt advice sector is a massive key to unlocking a better future for people experiencing financial difficulty, and with a new Financial Inclusion strategy around the corner, ideas are sparking about how to make the future brighter for those who’ve been feeling financially left behind.
At the same time, what also came across loud and clear – first hand from some of our clients who spoke at the event – was that the sense of stigma that people experience about debt is still very real. Our audience was made up of people from financial services and other corporates whose job is to manage how to deal with customers in debt. They were clearly moved by our clients’ testimony and determined to help keep making improvements so that debt collection is less frightening and more restorative to people’s lives.
Frustratingly though, debt is still such a taboo, and there is much more to do. In today’s uncertain world, it really can and does happen to anyone – Dave who works in insurance, Elzo who works in medical data analysis, and Sarah who works in research and campaigns on neurodiversity talked from the platform and demonstrated that. So, changing the language and tone of how we all talk about debt is important too, if we’re to get over the first hurdle of getting people to reach out for help in the first place.
Breaking this stigma is part of our core strategy over the next five years. It’s not just the kind thing to do, it’s the practical one too. When people try to struggle alone, so often problems get worse. When they get help, so often the sense of relief is immediate. As such, we must all do what we can to make it easier to get people over the misplaced embarrassment that can act as a barrier to seeking help.
Vikki Brownridge is chief executive of StepChange Debt Charity, based in Leeds.