FOCUS ON DEBT
DROWNING IN DEBT
It’s easy to end up out of your depth. You spend a bit more, borrow, lose a job, split with a partner or just ignore money issues. We talk to Citizens Advice debt advisor Rachel Penny about how it’s never as bad as you think and how help is at hand. WHAT BRINGS PEOPLE TO YOU? When people come to us they’re often in dire straits. They don’t plan to get into debt, but so many things impact. It could be someone is on a zero hours contract, relationship break up, a life event like a wedding. Or they don’t have access to online advice. In a lot of cases people have just never been taught how to manage a budget.
HOW CAN YOU HELP? We can help you make a plan to pay your existing debt, speaking to landlords and energy suppliers on your behalf. And we can help you maximise your income; get your full entitlement of benefit. Part of our role is to empower someone, give them the opportunity to be in control, to say ‘I can do this’. Our money advice team includes a personal budgeting advisor who’ll sit down with someone and take the time to explain.
CAN YOU TRULY UNDERSTAND THEIR SITUATION? I’m a single mum. When you’ve been through tough times yourself you can relate to people. But I can share my own experiences
and tell them how they can still have the things they want. I’ve recently bought an almost new Next sofa for £200 from eBay. With the right help and way of thinking it can be done.
IS DEBT A SYMPTOM OF MODERN SOCIETY? People have always had debt – in days gone by it would be the Provvy (Providence). Now it’s pay day loans with extortionate interest rates – not many people understand how annual percentage rate (APR) actually works!
PEOPLE SAY YOU HAVE TO TAKE DEBT TO GET A GOOD CREDIT SCORE? Credit ratings do show you are reliable and can pay, but you don’t need to buy a big item like a car to prove that – a mobile phone account will do just as well. Get help – see page 10.
IS IT ABOUT EDUCATION? Yes. We should all learn how to budget from an early age. We’ve spoken to sixth formers who don’t even realise you have to pay bills!
IS IT GETTING WORSE? We’re seeing a big increase in the extent people are affected psychologically. It’s also a lot more intense, more and more people tell us they feel like taking their lives. We’re a tight team and we all support each other, but it can be tough.
I’m a single mum – I’ve been through tough times myself. Rachel Penny, Citizens Advice debt advisor.
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