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Debt advice found to be successful in 9 out of 10 cases

Debt advice found to be successful in 9 out of 10 cases

Nine out of ten people struggling with debt benefit from seeking advice, new research has suggested.

According to figures gather by the Money Advice service, some 88 per cent of people in debt take action once the they have received guidance on their financial issues.

These actions included making payments to creditors, or by setting up a household budget.

A further 76 per cent managed to reduce their debts, while 71 per cent admit that seeking advice left them left stressed out about their problems.

In six per cent of cases, people struggling with debt manage to completely clear what they owe.

Correlation with mental health

Interestingly, the research also found that over half (52 per cent) of respondents in debt had been diagnosed as having a mental health condition, such as depression.

However, those with mental health difficulties were able to improve their general standard of wellbeing once the received advice and guidance about their debt.

The reduced level of stress meant that 67 per cent reported being able to sleep better, while a further 80 per cent said they felt more in control of their financial situation.

Advice addressing concerns

With so many people deciding to take the decision to seek advice, there was also plenty of evidence to suggest that standards of advice are satisfying the requirements of clients, with 74 per cent of respondents claiming to be happy with the guidance on offer.

Falling into arrears with mortgages, utilities and credit cards were the main drivers for people seeking advice, while around half (52 per cent) of clients had multiple types of bills or payments that they were concerned about.

Caroline Siarkiewicz, head of UK Debt Advice Programme at the Money Advice Service, comments: “These figures provide further evidence that debt advice really does work. If anyone is struggling to pay their bills or feels stressed about their financial situation, they should seek advice immediately. Advice can help you get on top of your debts, and feel better about managing your money.

Gillian Guy, chief executive of national charity Citizens Advice, added: “People are falling into a debt trap as the gap between rising bills and stagnant incomes hits household budgets.

“These figures show the impact that good-quality debt advice can have. The sooner you seek help, the sooner you can be back on your feet.”

Children in debt

News of the positive impact of advice on those affected by debt will come as a relief to a number of families across the country, with recent figures from Citizens Advice claiming that as many as two million children across the UK are living in families struggling with debt.

It means that many families struggling to make ends meet are more likely to have the means to shield their children from the negatives that come with debt if they seek out advice.

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