8 million people need debt advice in the UK – so why aren’t they accessing it?

Here at MaPS, we often hear how debt advice has helped people. It might be that it’s enabled them to find a way forward with their financial difficulties, or that it’s helped them to switch off and get a better night’s sleep. But there’s one thing that almost everyone who has received debt advice tells us: “if I had known what I know now, I would have got help much sooner.” 

I’ve been working in the debt sector for ten years and it’s become clear to me that people don’t get debt advice when it would help them. Instead, people tend to wait between 6 and 18 months before seeking advice, with some people struggling on for years before they ask for help.  

We know the impact this can have on people, amongst other things, being in debt can negatively affect people’s mental and physical health. It can also place an unbearable strain on personal relationships, lower productivity at work and radically reduce people’s quality of life.  

A client case study that I read recently has made the impact of this clear to me. The client had been struggling to cope with their debts for a considerable amount of time and it had really impacted her mental health. By the time she finally reached out for help, she was exhausted and distressed. However, receiving debt advice brought about change almost immediately. The client was placed into the Debt Respite SchemeOpens in a new window, also known as Breathing Space, which meant that the calls and letters that were making her so anxious were paused. She eventually received a Debt Relief Order (DRO)Opens in a new window which wrote off her debts and enabled her to move on with the feeling of a fresh start.

"I was feeling so stressed and overwhelmed about my debt. I didn't know where to turn. But Debt Free Advice was there for me. They explained all my options and helped me to choose the best solution for my situation. Thanks to their help, I was able to get a DRO and my debt was written off. I'm so grateful for their support." 

This is an amazing example of how debt advice can change lives. Although, I can’t help but think of how many sleepless nights and tears might have been avoided if the client had sought help sooner instead of struggling on alone. We welcomed the significant changes announced in this month's Spring Budget, which will make DROs more available and accessible and make it easier for people to find a way forward.

Given the impact a delay in getting debt advice can have on a person’s mental and physical wellbeing, we were curious to understand why some people might not get the help that they need. To find out more, we commissioned independent research in 2023 to improve our understanding of the barriers and drivers to people accessing debt advice. The report is a really interesting read and I would encourage all of you with an interest in making debt advice more accessible to take a look.

Sadly, some of the findings in our report will feel all too familiar. The stigma and shame that people feel when they are in debt is a major barrier to getting help, but many of the findings felt new to me. I was particularly struck that many people are reluctant to get debt advice because they fear they will lose control, that debt advice is something that is done to them and their views and decisions will not matter. All of us working in the debt sector know that this couldn’t be further from the truth. 

The research we commissioned for the report went further than just identifying the barriers. It also tested out some simple interventions to see if they could encourage more people to seek debt advice sooner. It’s exciting to learn that something as simple as a ‘journey map’, which clearly sets out the stages of the debt advice process and provides reassurance that the client will remain in control throughout, can make a big difference to whether someone will seek debt advice and when.

We are now thinking about how we can build the lessons learned from the report into content for our consumer-facing service, MoneyHelper. If your organisation helps people with debt, I would encourage you to do the same.

It has become clear through our research and others that we need to do more to raise public awareness of debt advice and how it can help. 

The vast majority of people don’t know how debt advice can help them. Ultimately, making debt advice services accessible and available is going to be a pointless exercise if people don’t know they exist in the first place. 

Understandable concerns about debt advice capacity have led to a reluctance to actively promote services, but with the evidence showing how delays in getting advice impacts people and the advice sector, I believe there is a case for doing things differently. How we work together to build public awareness is one of the topics we are exploring in our current consultation, so if you have views on these issues please do submit a response to us.  

If you have found yourself here because you are struggling with debts yourself, these please use our MoneyHelper debt advice locator tool to find free, confidential help. I promise you’ll wish you had done it sooner.