Could you spot the warning signs of problem debt in friends and family? One in ten Britons are struggling in silence – here’s how you can help
As many as eight million people in the UK are overwhelmed by financial worries and are frequently unable to pay monthly bill payments.
Yet money worries are still a taboo subject for many people and less than one in five will actually seek help. This leaves 10 per cent of Britons suffering in silence and dealing with problem debts alone, according to research from the Money Advice Service.
But how can you spot this among your friends and family and what can you do to help?
Bills mounting up? Make sure you ask for help early to avoid falling in to a debt crisis
Who is most at risk?
According to The Money Advice Service, young adults, renters, larger families and single parents are the most likely to struggle with debts.
It can seem easier to bury your head in the sand, or cover up any issues because you are embarrassed or want to protect loved ones.
However, identifying the symptoms and acting early can make all the difference when it comes to stopping debts become an overwhelming problem.
(Scroll down for the list of warning signs to watch out for).
Can friends and family help?
Friends and family play a key role in helping spot any potential issues early, according to Sheila Wheeler, Director of Debt Advice at the Money Advice Service.
She says: ‘With one in six people in the UK at risk of a debt crisis, there is a high chance that someone close to us may be struggling with money troubles. We are calling on friends and family to watch out for the signs someone might need help and to support them to access free debt advice as soon as possible.
‘For people who are experiencing financial difficulties, we want you to know that help is available and you do not need to suffer alone. Friends and family will want to help and support you.
‘Free debt advice is available now and will help support you in getting your finances back on track before your money worries become a bigger issue. Use the Debt test to find out how you can resolve your debts and find free, impartial help in your area.’
Seeking professional advice can help dramatically – 65 per cent of people are either actively clearing their debts or have repaid them in full within three months of seeking advice.
It can quickly have knock-on effects to their mental and physical health.
A massive 73 per cent of those in debt who seek help feel less stressed about their finances, two thirds begin to sleep better and half reported feeling better physically, According to Money Advice Service.
Where are the problem debt hotspots
Newham in London and Kingston upon Hull, top the list of the areas in the country with the highest levels of problem debt at 23.1 and 22.2 per cent respectively.
At the other end of the spectrum, those living in East Dunbartonshire in Scotland and Wealden in East Sussex have the lowest levels of problem debt at 9.9 per cent.
You can see how your region ranks, using the Money Advice Service Over Indebtedness map.
| Top 10 areas with the most residents with problem debts | percentage of residents with debt problems | Top 10 areas with the least residents with problem debts | percentage of residents with debt problems | |
|---|---|---|---|---|
| 1 | Newham | 23.10% | East Dunbartonshire | 9.90% |
| 2 | Kingston upon Hull, City of | 22.20% | Wealden | 9.90% |
| 3 | Tower Hamlets | 22.20% | East Renfrewshire | 9.80% |
| 4 | Barking and Dagenham | 22.10% | Hart | 9.80% |
| 5 | Manchester | 22.00% | Wokingham | 9.80% |
| 6 | Blaenau Gwent | 21.90% | Chiltern | 9.60% |
| 7 | Nottingham | 21.70% | South Bucks | 9.60% |
| 8 | Sandwell | 21.50% | Mole Valley | 9.50% |
| 9 | Leicester | 21.10% | East Dorset | 9.40% |
| 10 | Stoke-on-Trent | 20.80% | Elmbridge | 9.40% |
| Source: Money Advice Service | ||||
