The Crisis awaiting us after the pandemic - debt

North East charity Ditch Debt with Dignity say that once furlough and other financial aids related to the pandemic come to an end, we are likely to see many people "reaching crisis point" with debt.

Founder Wendy Fleming also explained to Northsound how banks and creditors are currently "being gentle" with those who owe them money due to the circumstances, but that this won't last forever.

Watch our Interview with Wendy Fleming:

She said:

"Taking mortgage holidays is fantastic, but it is a holiday, these all have to be paid back"

"At the end of the day the loans will have to be repaid, sometimes the interest rates aren't being frozen, that might cause fear, anxiety and panic for some people."

"We are really gearing up for that, we've got a really solid process that we work with people to help them get back on track."

The charity looks to help those experiencing financial issues, but Fleming also says it's important information is out there to support people.

Another issue groups like this encounter is a struggle to help people come forward.

Ditch Debt with Dignity deal with a number of high profile people and business owners, meaning there is a struggle to admit problems with money.

Fleming said:

"I think the big fear for most of these people is shame, they are very ashamed, they've got what's perceived to be very important jobs, or they run their own businesses."

"We could alongside people who are perceived to be financially stable on the outside, but are privately in financial crisis - usually people who won't qualify for any sort of state financial assistance."

Northsound also spoke to an Aberdeen business owner who has dealt with debt.

We are keeping them anonymous to protect their identity.

They said:

"Running a business especially going through the oil and gas downturns of the last 5 or 6 years it’s been surprisingly easy to end up in a financially difficult situation."

"In my experience the easy availability of credit was something I jumped on to try and help the business together and keep employees, that’s how I ended up in so much debt."

"When you’re in the midst of it all it’s sometimes really difficult to see a solution as the worry and anxiety of it all can take over."

Ditch Debt with Dignity provide a range of help for clients, and are currently developing tools that those struggling can use to anonymously research how to get better control of their finances.

This business owner says being treated without judgement and confidentially is key.

They said:

"Having Ditch Debt as a sounding board and voice of reason is really helpful. The non judgemental element is also really really important."

"They bring ideas and a level of expertise to help you sort out your finances, along with a level of accountability. But the main thing is it is non-judgemental and personal."

"We initially met with our adviser monthly and now it’s quarterly as we are able start to plan better, pay down debt and regain control of our finances. I have really appreciated the professional but friendly approach and the fact that I’ve never been made to feel bad or ashamed about the situation I’m in."

"They bring a positive perspective on things which has transformed our finances."

How to get help:

You can find Ditch Debt with Dignity here: https://ditchdebtwithdignity.com/

You can email the charity here: info@ditchdebtwithdignity.com

Government provided advice here: https://www.gov.uk/options-for-paying-off-your-debts/debt-management-plans