45% of CCCS clients waited a year before getting help. Carrying on regardless just makes your debt problems worse!
Stiff upper lip. Don’t fuss. Be stoical.
There are lots of reasons to try and live with a problem that’s gnawing away at you. Perhaps it’s the British way. But why go through the mental anguish of unmanageable personal debt when you can get free help in sorting it out?
We’ve released the results of a survey of over 2,000 CCCS clients as part of our annual Stats Yearbook release. There’s also an accompanying video that paints a sad story of the plight of those who fall into unmanageable debt. Both of the clients featured in the video considered suicide, such was the depths of their despair. We urge you to watch it.
The most shocking finding from the client survey was this: 45% of our clients actually waited over a year before finding help, despite them knowing that they had unmanageable debt.
12 months of pain
To put that statistic into context, it means that of the 370,000 people who contacted CCCS in 2011, 166,000 of them were aware that they had a debt problem they knew they couldn’t fix over a year before.
During that time, a quarter of 1% of the whole UK population were worrying about their debt, but were unable to do anything about it. Scale that number up by those who called another charity, or a debt management company, or tried a consolidation loan, and the sheer number of people suffering is frightening.
Rather than stopping the debt racking up further, they tried to make token efforts to service it, thinking they could cope. But we can be pretty certain that the interest, fees and charges continued to build up, and the money owed grew larger.
Alongside the financial headache is the mental health issue of having an unmanageable debt but not being able to do anything about it, and the lack of control that engenders. It’s a vicious circle.
As we’ve discussed before, mental health problems are closely linked with debt, not least the ‘shame’ of admitting the debt in the first place.
Debt management companies
This is where there’s a high risk of going to a debt management company. They thrive on those looking for “any port in a storm”, despite the fact that up to 15% of a client’s debt management plan payments go to their bottom line, not to paying off the debt. That can add up to £6,000 to a £30,000 debt.
We always advise those in debt to contact a debt charity first, whether it’s CCCS, Citizens Advice, National Debtline or Christians Against Poverty. There are organisations out there that will help and not take a penny in charges or fees for a debt management plan.
Take control of debt
Facing up to a debt problem is a positive step. In the past we've described it as a lightbulb moment. It doesn’t mean that they’ve 'failed'.
The stats bear this out: 67% of clients spoke with either their partner, or a trusted family member or friend before contacting a debt charity. And importantly, that didn’t tend to harm the relationship. 58% of clients with a partner found their relationship grew stronger or stayed the same when resolving their debt problem.
If those in debt think about it in a slightly different way - that by getting help sooner they’d save themselves from more debt, extra worry, and that it wouldn’t harm their relationship - they should take that first step with a little more confidence.
They just need to let down their guard and not carry on regardless.
If you need debt help use our online counselling service CCCS Debt Remedy or contact us. Think of your mental wellbeing and the financial implications, and please don’t wait a year first.