Helplines for people with money worries are gearing up for one of the busiest times of the year, with a call about debt expected every four minutes throughout January1 at the Money and Pensions Service (MaPS)2.
Last year, nearly 3,500 debt calls were made to the free Money Advice Service (MAS) helpline (on 0800 138 7777) in January, while there were 26,000 visits to the MAS debt advice locator, a tool that connects people with the most convenient debt advice providers in their area and over the phone or online. This year is expected to follow the trend, with demand for debt support on the increase.
MaPS, which is the largest single funder of free debt advice in England3, helps 560,000 people with free and impartial debt advice every year through their network of expert providers.
Traffic is expected to peak each Monday with January 20th due to be the busiest day of all as credit card bills for December arrive before many people have received their first paycheque of 2020. New regulations mean that banks and credit card companies must contact people whose repayments have been going more towards interest, fees and charges than towards the amount they actually owe, warning them about falling into persistent debt. It’s now likely more people will be seeking help to manage this.
MaPS has increased helpline staff by around 20% to manage the surge in call volumes at the start of the year.
Caroline Siarkiewicz, Acting Chief Executive of the Money and Pensions Service said:
“We know what a difficult time of year this can be for families who are worried about the bills piling up. It can be tempting to avoid confronting money worries after an expensive Christmas but the sooner you act, the easier it will be.
“Debt advice works. You can speak to the Money Advice Service for free, confidential help, connecting you with expert debt advice in your area.”
9 million adults are over-indebted
Today there are nine million adults in the UK who are over-indebted4. That means nine million people find meeting monthly payments a heavy burden or are regularly behind on their bills. Despite so many of us being over-indebted, only a third of over-indebted people are getting help with debt.5
Getting help can make a real difference
Getting free and confidential debt advice is the first step to getting your finances back on track. Money and Pensions Service data shows nearly two-thirds (64%) of people with outstanding payments have reduced or cleared their debts within three to six months of seeking advice6.
After getting debt advice, seven in ten people also report feeling less worried and less stressed about money. The majority of people (59%) feel their situation is better, three to six months after their debt adviser closed their case7.
MaPS offer the following top tips for tackling your money worries:
- Open up to someone. Although it can be difficult, talking about money worries is often the first step towards getting help. Research has shown that people who talk about their finances feel less stressed or anxious and more in control.
- Work out your debts. Write down everything that you owe. This might seem overwhelming but facing up to what you owe will help in the long run.
- Pay off debts in the right order. Make sure to pay debts such as mortgage, rent and energy payments before secondary debts like overdrafts, personal loans and credit cards.
- Set a budget. A good way to understand how much you can afford to pay back each month is to write down what your income is and list all your expenditure. The budget planner on the Money Advice Service website can help you calculate this.
- Seek professional help if you are struggling with debt. You can use the debt advice locator tool to find a free debt adviser in your local area. You can also sign up to the New Year’s Money Check-Up Challenge to get regular money tips and reminders throughout January.
-ENDS-
For media enquiries contact:
MaPS Press Office 020 8132 5284 / media@maps.org.uk
Ben Infield, press officer 020 8132 4696 / benjamin.infield@maps.org.uk
Notes to editors
- Based on rounded average number of 3,472 debt-related calls in January with the Money Advice Service helpline open for 230 hours. 3472 / 230 = 15.1 calls an hour or one call every 4 minutes 60 / 15.1 = 3.97
- MaPS brings together the free services previously delivered by the Money Advice Service, The Pensions Advisory Service and Pension Wise. MaPS offers customers guidance and appointments over the telephone, online and in person.
- MaPS funds debt advice delivered by charitable organisations such as Citizens Advice, StepChange and National Debt Line.
- CACI over-indebtedness model (2018) available at: https://www.moneyadviceservice.org.uk/en/corporate/a-picture-of-over-indebtedness-in-the-uk
- MaPS, Debt Need Survey (2019 forthcoming) combined with ONS Population estimates for the UK (mid-2018). Figures regarding debt advice access are based on 10,000 interviews. Access figures are based on consumers reporting receiving debt advice in the last year.
- 2016 outcome evaluation of debt advice funded by Money Advice Service (2017)
- 2016 outcome evaluation of debt advice funded by Money Advice Service (2017)
About the Money and Pensions Service
The Money and Pensions Service (MaPS) vision is: ‘everyone making the most of their money and pensions.’
MaPs is an arm’s-length body sponsored by the Department for Work and Pensions (DWP), and it has a joint commitment to provide access to the information and guidance people across the UK need, to make effective financial decisions over their lifetime. The organisation also engages with HM Treasury on policy matters relating to financial capability and debt advice.
As the largest single funder of free debt advice in England MaPS works alongside partners across the UK to make debt advice easier and quicker to access when and where people need it, and to improve standards and quality across the sector.
For further information visit the Money and Pensions Service website www.moneyandpensionsservice.org.uk
Consumers can access free guidance about their money and pensions via the following websites and help lines:
For money guidance: www.moneyadviceservice.org.uk / 0800 138 7777 / We are also piloting a WhatsApp service available on +44 7701 342744
For general pensions guidance: www.pensionsadvisoryservice.org.uk / 0800 011 3797
For pensions guidance for those aged 50 and over: www.pensionwise.gov.uk/en/ 0800 138 3944