Latest news with #StepChangeDebtCharity
The Independent
18-04-2025
- Business
- The Independent
Third of 18 to 21-year-olds ‘worry about money every day'
More than a third (35%) of Gen-Z adults aged 18 to 21 worry about their finances every day, according to research for a major bank. But only a fifth (20%) of young adults said they would be interested in learning about debt management, the survey for Santander UK found. Just over nine in 10 (93%) of young people surveyed said they worry about money generally. Less than a third (30%) of young adults surveyed said they had learned about student loans at school. One in eight (12%) said they had been taught about personal loans, and a fifth (21%) recalled learning about credit cards. Separate research published in November last year by StepChange Debt Charity indicated incomes are 28% lower among its clients aged 18 to 24 compared with all StepChange clients, equating to £490 less per month. Mark Weston, director of financial support at Santander UK, said: 'Debt is an important part of most people's day-to-day finances. 'Borrowing money allows people to buy homes, access higher education, and make big purchases. However, it's crucial that people know the appropriate risk and reward trade-off before making the decision to borrow, to avoid unexpected difficulties in the future.' Many banks and building societies have tools on their websites to help people with finances and budgeting and Santander UK has free financial health check and budget calculator tools. Help with budgeting and debts is also available by visiting websites such as the Government-backed MoneyHelper service as well as comparison websites and websites belonging to charities. People can also reach out to their lender to discuss their options if they are worried about struggling with debts. Getting help early can mean there are a wider range of potential options to deal with any problems. Savanta surveyed more than 2,000 18 to 21-year-olds across the UK in October and November 2024 for Santander.
The Independent
28-03-2025
- Business
- The Independent
How to get help with debts and spot the warning signs of a problem
Households are braced for a fresh round of bill hikes in April – and some may have to dip into savings or perhaps even go further into debt to cover expenses. If you're slipping further into the red, support is available, and Debt Awareness Week (March 24 to 30 2025) encourages those with money worries to open up and take steps to get help. Richard Lane, chief client officer at StepChange Debt Charity, says: 'Debt is a normal part of life for many people, whether it be a mortgage, car finance agreement or credit card. 'Borrowing on credit can be a useful to manage chunky expenses and spread the cost of a big purchase. However, debt can be a sensitive topic, and the stigma around it often prevents people from talking openly or spotting problems early. 'This Debt Awareness Week, we want to encourage open conversations, challenge the stigma, and help more people feel confident seeking support.' Here are some ways to tackle debts: – List everything you owe. Getting an overview of your total debt will help you to see the scale of the issue – which could be better – or worse than you thought. – Be aware of debt becoming a problem. Lane says: 'There can be several warning signs that could indicate debt has become a problem, and it could be time to seek free and impartial advice. For example, if you're falling behind on essential costs like your rent, mortgage or bills, using credit to make it through to payday, or being hit by late payments on credit or overdraft charges. 'If you're finding yourself worrying about credit repayments, and it's causing you stress and anxiety, this is also a sign you could benefit from some support.' – See if debt costs could be less expensive. It may be possible to cut interest charges by moving some debts around, for example, by looking at 0% balance transfer credit card options. Bear in mind any fee for transferring the balance as well as the length of the zero-interest period. – Use budgeting tools. Consumer help websites and charities have free budgeting tools to create some financial 'wiggle room'. Some people may have a 'negative budget' – where their outgoings are more than their income – no matter how hard they try. If this is the case, seeking support early could stop debts spiralling. – Consider contacting a charity. Lane says: ' Charities like StepChange offer free and impartial debt advice – we're not concerned about what caused your debt problems and we're only here to help you get back on track without judgement. It's also important to note that seeking free debt advice and exploring your options will not impact your credit file.' – Speak to loved ones. Speaking to family or trusted friends can be a relief, as well as opening up an important source of support. – Contact your bank. Eric Leenders, managing director of personal finance at UK Finance, says: 'If your credit card or loan repayments feel unmanageable, don't wait until you miss a payment, contact your lender as soon as possible. 'They are prepared to help, even if you are currently up-to-date with payments. The sooner you reach out, the more options they'll have available to find a solution that works for you, and the faster they can provide assistance.' Banks and building societies also offer various financial wellbeing initiatives – and you don't always need to be a customer. HSBC UK recently announced it is extending a 'financial health check' service across branches, for customers and non-customers. Sally Williams, HSBC UK's head of branch network, says: 'A simple financial health check could be a game-changer.'
The Independent
23-03-2025
- Business
- The Independent
The higher earners in problem debt
'I feel ashamed and don't want my loved ones to find out,' is one of the main barriers to getting debt advice, according to StepChange Debt Charity. I know through my work as a money coach that there's a lot of shame around money. Money shame is the feeling that you're fundamentally 'bad', stupid, unworthy and lacking in your abilities when it comes to money. Shame makes people turn inwards, beat themselves up, and stops them seeking help. And this is a problem. Especially when it comes to debt. Because it means the situation gets worse. Monday 24 March marks the start of Debt Awareness Week, run by StepChange. It aims to raise awareness and understanding of the stigma around debt and help people take the first step to getting support. High income, problem debt If money worries leave you feeling lonely, you're not alone. In my line of work, I know that anyone can fall into problem debt – from the most vulnerable in society to higher earners. Whatever your income, if there's more going out than there is coming in, then money is always going to be a problem at some point. As one person shared with me: 'I earn £70,000 a year but I'm £30,000 in debt. I've been living beyond my means for a long time now. My perception of what's affordable has changed as I've earned more but also in relation to friends who have more money to spend than me. 'I struggle to budget. I've been winging it, hoping for the best and using credit when I get stuck. I'm embarrassed and ashamed and I've been hiding it from everyone in my life. I thought I'd be more financially secure at this point in life and it scares me that I'm not.' It's one thing to earn enough money to service debt. But it takes only one unexpected event – a financial shock – for things to unravel. Financial shock Simon Trevethick, head of communications at StepChange, says: 'We saw, five years ago, a pandemic that put in jeopardy millions of people's finances, millions of people's livelihoods. That sudden financial shock is something we've seen time and time again over the more than 30 years StepChange has been working with people in problem debt. 'The reality is that unexpected life events will impact us all at some point, whether that's a job loss, illness or a relationship breakdown. 'These things can have a knock-on effect on our finances and increase the risk of debt problems. This means that people who are on higher incomes aren't immune to getting into financial difficulty, if they're servicing multiple debts and paying out a lot to those each month. 'It's when unexpected life events happen and suddenly those debts do become an issue that it can be difficult to shed the feeling of shame and stigma that's attached to this idea that if you fall into debt, it's a result of your own financial mismanagement.' Debt stigma This debt stigma prevents many people seeking help that would aid their financial situation and alleviate their money worries. StepChange clients wait more than a year, on average, before they reach crisis point and turn to the charity for help, says Trevethick. 'Once somebody does get in touch with us and they've had an opportunity to share that burden, they start sleeping better, their relationship with their family improves, their mental health improves. 'The point of Debt Awareness Week is to highlight just how common financial difficulties are, particularly at the moment, and to say that you're not alone and there is help out there.' Seek help If you're struggling to cover your basic monthly outgoings including your mortgage or rent, household bills, and minimum credit card repayments, that's a sign to seek help. Start by pinning down where you are now. Make a list of who you owe money to, how much you owe and the interest rate you're being charged. Seek help. Financial guidance website MoneyHelper has a debt advice locator that lists where you can access free debt advice from organisations including StepChange Debt Charity. Contact your lender. Trevethick says: 'So many people are absolutely terrified to tell their lenders that they aren't able to afford their repayments. Your bank has a legal duty to help you and work out a way forward.' How did you get here? This is a big one for my clients. It's one thing to draw up a budget and work out how to tackle the debt. But it's important to address how the debt arose in the first place so we can address the underlying issue so it doesn't happen again.
The Independent
27-01-2025
- Business
- The Independent
Two in five adults expect their financial situation to worsen in 2025
Two-fifths (41%) of adults expect their financial situation to worsen this year, according to a debt help charity. More than half (59%) of those expecting their finances to get worse said this was due to higher energy bills, a survey for StepChange Debt Charity found. Around one in six (17%) adults said they always worried about money, while a further 59% said they often or sometimes worried about money. Of those worrying about money, just over half (53%) said they were worrying more than they did one year ago. The cost of living, including stubbornly high energy bills, continues to impact families, individuals, and communities, with particular strain being felt by women and those with parental responsibilities Vikki Brownridge, StepChange Debt Charity Women were particularly likely to say they were worrying more about money now than a year ago, at 58%, compared with 48% of men. Two-fifths (42%) of people with parental responsibilities anticipated their financial situation would worsen in the coming year, with more than half (54%) of them saying they worried more about money now than they did a year ago. StepChange said nearly 4,000 people visited its website looking for debt advice on Christmas day alone. Vikki Brownridge, chief executive at StepChange Debt Charity, said: 'It's clear that millions of people across the UK are feeling the weight of financial uncertainty. 'The cost of living, including stubbornly high energy bills, continues to impact families, individuals, and communities, with particular strain being felt by women and those with parental responsibilities. These challenges are not temporary. They reflect the long-term financial pressures many are facing and without the right support, it's only going to get harder for people to manage their finances Vikki Brownridge, StepChange Debt Charity 'What's concerning is how many are facing worries about their finances going into 2025, even more so than this time last year. 'These challenges are not temporary. They reflect the long-term financial pressures many are facing and without the right support, it's only going to get harder for people to manage their finances. 'We know that debt is often a consequence of these mounting pressures, and for many, seeking help as early as possible can make a significant difference. 'If you are struggling, speak to your creditors who have a responsibility to support those in difficulty.' Debt support charities can help with advice on managing debt and budgeting. The survey was carried out by Censuswide, among 2,000 people across Britain in December 2024.
