Research by debt advice charity Debt Support Trust provides a worrying picture into financial and social problems for people struggling to manage their debt problem. The report describes how 65% of people in debt have told less than 2 people about their money worries and 55% of those have not told their friends or family about the problems they face.

Stuart Carmichael, Trustee of Debt Support Trust said “It’s important to realise debt problems are more than a financial issue – the social impact is debilitating”. According to the survey, 77% of people encountered relationship problems with friends and family as a direct consequence of their money worries.

People in debt are using their available disposable income each month to pay debts, however this ‘treading water’ approach can only exist for a short period of time before decisive action is taken to relieve financial and social pressures.

Mr Carmichael continued “The survey provided an honest account of the impact debt problems have. At the end of the day, nobody wants to be in debt however most people don’t know how to resolve the problems or what solutions are available”.

Further research from the Debt Support Trust survey explained that “knowledge”, “reliability” and “Empathy and care” were the most important characteristics of a debt advice organisation. The least important were that the “company advertises” and the “company location”.

Seeking Debt Advice

People seeking debt advice may ask what debt solutions exist for those in financial difficulty. The advice can depend of the geographical location of somebody living in the UK. If you live in Scotland, then your debt advice may be different to people living in England, Wales or Northern Ireland. This is because of the different legislation.

In some instances people may simply require general debt advice to deal with one or two creditors. However, for larger debt problems a debt management plan, IVA, protected trust deed (Scotland only) or Bankruptcy are all popular options to resolve debt issues.

These debt solutions all have positive and negative aspects but can help you resolve your debts over time and become free of your debt.  An IVA will last typically for 5 years whilst a Protected Trust Deed last for 3. Bankruptcy would last for 1 year however you may have to make contributions to your debt for 3 years. The debt management plan will last until all of the debt has been repaid.

Debt Support Trust is a registered charity helping people with debt and money problems. You can contact the charity via 0800 085 0226 or visit their website www.debtsupporttrust.org.uk