February 29, 2024 - 286 views
Over 300,000 people across Wales need to get debt advice and over half a million more live on the edge, new research from the Money and Pensions Service (MaPS) reveals.
Using its survey of 982 adults in Wales, conducted in July-September 2023, MaPS has calculated that one in eight people (13%, 328,000) require expert advice to deal with the money they owe.
People in this situation have debts that could seriously affect their lives, such as mortgage, rent, council tax and utility arrears. Many will have seen creditors start enforcement proceedings against them, such as contact from bailiffs, legal action or pre-payment tariffs for electricity and gas.
The research also shows that another 572,000 people (one in four adults, 23%) are now at risk financially, meaning they’re struggling to keep up with bills and borrowing commitments, using high-cost credit, or can’t afford food or essentials.
Combined, this means over a third of Wales‘ population (36%) either need debt advice or are at risk of needing it soon.
Among those 328,000 who already need it, people are more likely to be young, lower earners and in temporary jobs.
Almost half (48%) are 18-34 years old, despite that age group only making up 23% of the population. Three quarters (74%) earn less than £30,000 a year (vs. 49% of the population), while 35% work in temporary jobs like Fixed Term or Zero Hours contracts (vs. 14% of the population).
MaPS says that debt advice can be “truly life-changing", but being overwhelmed, embarrassed or unsure where or how to access it are all barriers to people getting the help they need.
In reality however, people will remain in charge of their own decisions if they get advice. They won’t be judged and contacting a debt advice organisation to find out about their options won’t affect their credit rating.
As a result, MaPS is urging them to follow the path that thousands have already taken and go online to find free debt advice.
To enable this, the organisation offers a free online debt advice locator tool on MoneyHelper, which enables people to find the help they need either from national or local organisations. Debt advice services are available online, by phone or face-to-face.
Lee Phillips, Wales Manager at the Money and Pensions Service, said:
“These figures show over a third of people in Wales are either urgently in need of debt advice or fighting to stay afloat. Many of them are struggling on alone without the help they so desperately need.
“Debt problems can have a corrosive effect on someone’s relationships, self-confidence and mental health, and every expense can ratchet up the anxiety. It can eventually lead to the disconnection of utilities, legal action and even homelessness.
“If you’re finding it hard to cope, MoneyHelper will help you find free debt advice. You won’t be judged and you could join the thousands before you who’ve turned things around.
“Many people wish they’d acted faster, but no one ever says they got debt advice too soon.”
Minister for Social Justice and Chief Whip Jane Hutt said:
“We know the cost-of-living crisis has put household finances across Wales under enormous strain and many people will be left struggling with debts. But I know people don’t just have a debt problem.
“This is why we deliver debt advice through the Welsh Government’s Single Advice Fund where a person can get help to deal with their financial problems, maximising their income and to address any other social welfare problems they have. This ensures they have more sustainable outcomes.
“I would also urge anyone struggling with their financial commitments to get free confidential advice from the Welsh Government funded Advicelink Cymru service.”
