Over 350,000 people in the North East need debt advice
New figures have been revealed by the Money and Pensions Service
Last updated 25th Mar 2024
A charity says over 350,000 people in the North East need debt advice and another half a million are living on the edge.
The Money and Pensions Service (MaPS) has revealed the new figures in line with StepChange's Debt Awareness Week.
Using its survey of 863 adults living in the region, conducted in July to September 2023, MaPS has calculated that one in six (17 percent, 357,000) require expert advice to deal with the money they owe.
The charity says people in this situation have debts that could seriously affect their lives, such as mortgage, rent, council tax and utility arrears. Many will have seen creditors start enforcement proceedings against them, such as contact from bailiffs, legal action or pre-payment tariffs for electricity and gas.
The research also shows that another one in five (22 percent, 462,000) are now at risk financially, meaning they’re struggling to keep up with bills and borrowing commitments, using high-cost credit or unable to afford food or essentials.
Combined, this means over a third of the North East’s population (39 percent) either need debt advice or are at risk of needing it soon.
For its 10th anniversary, StepChange’s Debt Awareness Week is focusing on the barriers in getting debt advice, which MaPS supports, having recently revealed its own research into the area.
MaPS’ report found that there are 11 personal barriers that people face when seeking debt advice. These include people feeling embarrassed or shameful, finding the experience too overwhelming, not identifying with their debt problem or not understanding what debt is, and that people aren’t sure where to turn.
MaPS says that debt advice can be “truly life-changing" and encourages organisations who offer advice to follow its nine recommendations to help those in need tackle these barriers.
Recommendations for organisations include simplifying the process, making the journey flexible, and giving people more control over their debt journey.
MaPS additionally wants to remind those in need that they will not be judged, and contacting a debt advice organisation to find out about their options won’t affect their credit rating.
As a result, it is urging them to follow the path that thousands have already taken and go online to find free debt advice.
To enable this, MaPS offers various money support tools including the Money Adviser Network as well as its free online debt advice locator tool on MoneyHelper, which allows people to find the help they need either from national or local organisations. Debt advice services are available online, by phone or face-to-face.
Karleen Dowden, North-East Partnerships Manager at the Money and Pensions Service, said:
“These figures show the sheer scale of how many people in our region urgently need debt advice. It could mean that hundreds of thousands are currently battling on alone without the help they so desperately need.
“Debt problems can have a corrosive effect on someone’s relationships, self-confidence and mental health, and every expense can ratchet up the anxiety. It can eventually lead to the disconnection of utilities, legal action and even homelessness.
“We understand that there are barriers to seeking debt advice, but we urge organisations to try to reduce these to ensure that those in need of support feel they are able to access it.”
“If you’re really struggling, MoneyHelper will help you find free debt advice. You won’t be judged and you could join the thousands before you who’ve turned things around.
“Many people wish they’d acted faster, but no one ever says they got debt advice too soon.”