Debt Awareness Week is a great opportunity to take stock, review your financial circumstances, and seek help if you feel that your debt is becoming a problem
What is Debt Awareness Week?
Debt Awareness Week is dedicated to talking about debt and encouraging people struggling with their finances to seek help. Established by debt active charity StepChange, it’s taking place from 20th to 26th March 2023.
If you’re dealing with debt, you’re not alone. With the rising cost of living, redundancies, and unexpected expenses, many of us are finding it more difficult to manage our finances. It’s important to recognise that this isn’t a reflection of your financial literacy or work ethic, problem debt can affect anyone at any time.
Despite this, debt is often still seen as a taboo and something we prefer not to speak about in public. Debt Awareness Week aims to break down these barriers, helping people to be more open about their finances and take steps to improve their circumstances and their mental health.
Do I have a debt problem?
If you’ve never had an issue with debt before or you’re not sure that your situation counts as a debt problem, Debt Awareness Week can present a good opportunity to step back and assess your current circumstances. Problem debt can build over time and habits that don’t cause harm straightaway can quickly become more serious.
One of the first signs that you have a debt problem might be that you’ve started borrowing. You might be borrowing money from your friends or family or increasingly relying on credit cards to cover your everyday bills. You could also have a problem if you’ve started falling behind with your debt repayments and are facing threats of further action by your creditors.
These situations may not apply to you but, if you’re feeling anxious about money, dealing with sleepless nights, or are putting off checking your bank account, you might also be at risk of having a debt problem.
Debt and mental health
When you’re worried about money, watching the bills stack up and falling further behind with your repayments, it can take its toll on your mental health. Even so, it’s tempting to keep your concerns to yourself; you might feel embarrassed, ashamed, or driven by a desire to protect your family from sharing your anxiety.
Unfortunately, keeping quiet about debt can amplify its impact on your mental health. Opening up and being honest about your situation might be uncomfortable, but the relief you’ll feel almost always outweighs the discomfort. You may also find that talking about your finances encourages others to be more open too and could give you the confidence you need to seek help.
Getting help with debt
No matter how difficult your financial situation feels, there are always things you can do to improve your circumstances. Don’t suffer in silence; talking about your debt and finding help is the first step. Get in touch with your bank and your creditors to let them know that you’re having problems. They can often offer a range of solutions including temporary payment pauses, an extended overdraft, or lower monthly repayments.
You can also consider seeking impartial debt advice. A friendly debt expert can listen to your concerns without judgement, speak to your creditors on your behalf, and help you find a debt management solution that suits you and your individual circumstances.
How to improve your financial wellbeing
If you’re concerned that you may be at risk of entering into problem debt, consider acting straightaway to start improving your financial wellbeing straightaway:
Create a budget
Implementing a set monthly budget can help you manage your finances. Take time to list all your outgoings and how much disposable income you have left over once all your essentials have been covered. This exercise can also highlight costs that you don’t need to pay such as lapsed subscriptions as well as identifying areas where you could save by switching to a different provider.
The secret to creating a workable budget is not to make it too strict. If you have no room in your budget for the things that bring you joy, you’ll find it more difficult to resist breaking it and treating yourself on the days when you need a boost. Setting aside money for your weekly takeaway, a night out with friends, or a day trip with the kids can help you stick to a budget long-term.
Use price comparison sites
If you feel that you’re overpaying for your household expenses, mobile phone, or car insurance, using price comparison sites could help you find a better deal. Make it a habit to check the options available to you before renewing a contract. You might also be able to save money by going through a cashback site. These websites offer you a set percentage of your payment back simply for clicking through from their page.
Check your finances
When you’re worried about debt, it’s all too easy to ignore the problem, stop opening bills, and stay away from your bank balance. Unfortunately, this approach can make the problem even worse. Checking your bank balance and credit score regularly can ensure that you know exactly where you stand, are aware when you’re drifting towards your overdraft, and identify mistakes on your credit report that may cause problems in the future.
Ready to seek debt advice? Our friendly advisors are here to help. Give us a call on 0161 8260 585 or send a message here