By Paul Fox, Money and Pensions Service
Financial troubles can strike any of us at different points in life, and most people have experienced money difficulties at some stage.
Many scenarios can lend themselves to putting a strain on our finances, including ill health, loss of employment, relationship problems, borrowing and gambling.
In the 2024 Financial Conduct Authority Financial Lives Survey more than one in four adults reported either not coping financially or finding it difficult to cope. One in seven (7.4m or 14 per cent) felt heavily burdened keeping up with their domestic bills and credit commitments.
While these are sobering numbers, whether you’re worried about rising costs, covering higher energy bills or tackling debt, there are useful tools, calculators and guides to help you keep on top of your money.
BILL PRIORITISATION
It can be difficult to manage all the different bills we need to pay. The consequences of missing some types of bills can be more serious than if you fall behind on others. Money Helper’s bill prioritiser tool can help you put your bills and payments in the right order. If you are struggling to pay, it will tell you in two steps what to do before you miss a payment. Letting your creditor know and having early conversations with them is the best first step to resolving your money issues and avoid falling into problem debt.
FALLING INTO DEBT QUICKSAND
An often-quoted phrase is that of a ‘debt timebomb’ waiting to blow up. The truth is that for many people, it’s more like falling into quicksand. Once you’re trapped in debt, it can be hard to get out and it’s often drawn out over a prolonged period.
Have you missed more than one debt payment? Speaking to a trained and experienced debt advisor about your situation can help.
SEEKING DEBT ADVICE
Most people who have accessed regulated debt advice tell us they feel less stressed and more in control of their life again.
A debt advisor can give you advice on better ways of managing your money, check to see if there are any benefits or entitlements you might be able to claim and tell you about the ways of dealing with debts that are open to you. They can get you out of debt faster and everything you tell them is kept confidential.
Money Helper is one of many organisations that can help you if you are struggling with problem debt. AFF has a list on its website aff.org.uk
A WORD OF WARNING
There are many unethical adverts online that try to convince you that you need to sign up to debt advice with them when they may not be an appropriate organisation.
They often charge fees or commission or want to sell your details on to an inappropriate debt advisor. Be careful, if you need debt advice then first look at Money Helper’s Debt Advice Locator.
All the listed services in England are free, confidential and hold a standard or membership code accredited by the Money and Pensions Service. Debt advice services in Scotland, Wales and Northern Ireland are still free and confidential but may not hold a standard or membership code accredited by the Money and Pensions Service.
You can speak to Money Helper in confidence on 0800 138 7777 or visit moneyhelper.org.uk/en/money-troubles
ASSIGNED OVERSEAS?
The Royal British Legion has a Benefits, Debt and Money Advice (BDMA) Service helpline: + 44 (0)20 3376 8080, or you can email info@britishlegion.org.uk