“What I would say to anybody that’s gone through, is going through or may ever go through what I have, is to really try to get that advice from StepChange. The sooner the better. Just getting that initial advice, talking to somebody who knows everything about debt, who knows your rights, who knows that they can give you the right advice on how you would go forward should you want to go forward. But burying your head in the sand is not the way to go about it.”

These are not our words, but the words of Alannah, a StepChange client who came to us after her financial difficulties became so overwhelming that she felt she had nowhere to turn. She lives with chronic health issues and was facing eviction through no fault of her own. Unable to keep up with the rising cost of living as her benefits entitlement was reviewed and reduced significantly, she simply did not have the income she needed to survive as a young mother expecting her second child. She turned to StepChange for support and was able to access a debt management plan (DMP), which helped to manage her repayments with her creditor and consolidate her debts.

Alannah’s story is not unique, far from it. In January of this year alone, we supported 19,000 people through debt advice, the most in any month since before the pandemic. Many of those contacting us are facing a daily struggle just to make ends meet and with the cost of living still rising, we expect to help more than 180,000 people with debt advice this year.

But for so many, there are barriers that prevent them from reaching out for this advice, advice that could set them on a path to a financially secure future, something which Alannah now has. 

This week, for our tenth annual Debt Awareness Week, we’re shining a spotlight on some of these barriers and encouraging more people to take that first step towards becoming debt free.

Despite the cost of living crisis opening more conversations around money over the past couple of years, shame and stigma are common feelings among those struggling with debt. There are unhelpful narratives around debt being a result of poor money management, which can lead to people hiding their financial troubles, even from those closest to them. The reality is that debt does not discriminate – it can happen to anyone – and an estimated 4 million adults in the UK are in problem debt, with a further 17 million at risk of falling into it. Previous research has found that the number one driver of debt is a ‘life shock’ – such as a redundancy, a divorce or a sudden death, which throws you out of kilter and into an unsustainable financial path.

Poor mental health can be both a cause and effect of problem debt. Research from Money and Mental Health Policy Institute found that almost half of those in problem debt also face mental health problems, with the overwhelming majority (86%) saying that their financial situation had worsened their mental health issues. We know that mental health problems can make managing your finances difficult – but taking the first step to getting online advice allows you to take things at your own pace. At StepChange we have expert advisors on hand and work closely with specialist mental health organisations to provide extra support.

More generally, for people facing debt and the stresses that come with it, so many are unaware of what support looks like or are simply put off by what they feel will be a daunting and difficult process. 

Firstly, debt advice is free and impartial – you should never pay for it. It begins by assessing your incomings and outgoings, and from there, an advisor will tailor the advice to your personal situation. This may mean looking at a formal debt solution, adjusting your budget to make savings or recommending ways to access grants, benefits or other schemes that could bring someone more money each month.

Perhaps one of the most prominent concerns people have about debt advice is the impact it may have on their future finances and credit score. There’s often a misunderstanding that seeking debt advice or assessing your budget with a debt advisor can damage your credit score and impact your future ability to access credit. However, getting debt advice does not impact your credit score. While some debt solutions may, it’s likely that your credit rating will have already been impacted if you have defaulted on a debt. The key thing to remember is that if you are facing problem debt then the priority is not your future financial position, but your current one. What’s more, your credit score is not permanent, and you can work on it again

The crucial point here is that there is help for people out there and these barriers can and must be broken down. As the cost of living crisis continues, more and more people across Britain are seeing their finances squeezed more than ever before, with debt across not just typical lines of credit like loans and overdrafts, but across everyday essential bills. Debt advice can be truly lifechanging, and there is no harm in taking that first step to see what support is out there.

StepChange Debt Charity offers free and impartial advice to people struggling with debt. To get started visit stepchange.org and access the online debt advice tool, which is available 24/7. Debt advisors are available to support over the phone. Simply call 0800 138 1111.

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