To mark the 10th anniversary of Debt Awareness Week, we explain – and debunk – five of the most common reasons why people don’t seek help for their problem debt
2024 marks the 10th anniversary of Debt Awareness Week, running from 18th to 24th March. This is an annual opportunity to spotlight the causes of problem debt and the importance of seeking help. While a lot of progress has been made over the last decade, there are still many people who are reluctant to seek help with their debt. Here are five of the most common reasons – and how to overcome them:
1. “I feel ashamed and don’t want other people to judge me”
Our personal finances are often still seen as a taboo topic and something that we’re reluctant to discuss even with close friends or family members. This silence can feel even louder when you’re struggling with debt.
The truth is, there should be no stigma around needing debt support. There are so many reasons why someone might have fallen behind with their repayments and it’s rarely because they’ve been frivolous with their spending or have intentionally missed a payment date.
Everyone – even the most budget conscious among us – could experience a sudden change in circumstances that makes it difficult to manage their debt. The more we talk about our financial situation and share our anxieties with the people who matter the most, the less stigma there will be around seeking help with debt.
2. “I don’t have the time or headspace to deal with my debt”
When you’re juggling a full-time job, raising a family, and tackling your household chores, adding managing your debt to the list can feel like too much to handle. This feeling of overwhelm can be even harder to manage if you’ve fallen behind with payments and are now being chased by your creditors.
The good news is that getting debt help might be quicker and easier than you thought. A single phone call could be enough to kick-start the process and get you on the way to finding the right debt management solution for you.
An expert debt adviser can also help you enter Breathing Space. This is a government scheme that is designed to help free up some headspace so you can focus on tackling your debt. For 60 days, you won’t have to worry about being contacted by creditors, facing further debt recovery action, or paying more in interest and charges.
3. “I don’t understand debt advice and how to find it”
IVA, DMP, DRO – the world of debt advice (and its acronyms) can be confusing. If you’ve never been in debt before or haven’t had much interaction with the financial services industry, it’s understandable that you might not know where to start when considering getting debt help.
There are several charities and government resources that can be a good place to start. Organisations like StepChange, the National Debtline, and Citizens Advice have a wealth of information on debt management. The government also provide advice and guides to the different programmes available on both gov.uk and their MoneyHelper website.
When you do connect with an expert debt professional, don’t be afraid to ask them as many questions as you like. They’ll be happy to talk you through each debt management option as well as its pros and cons so that you can make an informed decision.
4. “I’m struggling with my mental health”
Debt and mental health are closely linked; certain mental health conditions can make it more difficult for you to keep up with repayments or navigate sudden life changes, while debt can also cause or exacerbate issues like stress, anxiety, and depression.
That’s where seeking debt help can have multiple benefits. Having a friendly expert listen to your situation and talk you through the potential solutions can be a huge weight of your mind. It could help you start to see a light at the end of the tunnel and leave you with a workable plan to pay down your debt.
If you’re in crisis, you may also be able to enter a Mental Health Breathing Space before seeking debt help. This is designed for those in mental health crisis treatment and can be certified by an Approved Mental Health Professional (AMHP). If you’re eligible, mental health breathing space will last as long as your treatment does, plus 30 days, giving you time and space to focus on your mental health without worrying about being chased by creditors or facing increased interest.
5. “I don’t know where I can get debt help that I can trust”
Debt advice hasn’t always enjoyed the best reputation with rogue traders and mis-sold products impacting trust. When assessing whether a debt expert is the right one for you, look for people and organisations who are upfront and honest.
A trustworthy debt professional should share the pros and cons of each debt management solution, be transparent around the fees involved and whether you’ll be eligible, and never pressure you to make an immediate decision.
Here are a few more things to consider when choosing a debt advice professional:
- Are they FCA registered?
- Do they make any unrealistic claims that sound too good to be true?
- Have they been reviewed on independent websites like Trustpilot?
- Have they been recommended by a friend or family member?
- Do they offer a range of debt management solutions?
Ready to seek debt advice? Our team of is here to help. Give us a call on 0161 8260 585 or send a message here
