Credit, Collections & Insolvency News
The Money and Mental Health Policy Institute is calling for action to ensure people in distress can access ‘life-changing’ debt support as part of the pandemic aftermath
The call for action is part of a new report by the charity which explores the challenges people with mental health problems face in accessing debt advice.
The report shows that nearly half (46%) of people in problem debt in England also have a mental health problem, amounting to 1.5 million people in total. It also shows that many in this group experience common symptoms of mental health problems which make it much harder to find and engage with debt advice, such as difficulties communicating, impaired clarity of thought and reduced concentration or problem-solving skills.
Moreover, these challenges are exacerbated by bureaucracy and a ‘one-size-fits-all’ approach within the debt advice system leaving many people with poor mental health unable to get the support they need with debt problems.
Based on a survey undertaken by the charity of 280 people with experience of mental health problems who have tried to access debt advice, the report highlights three key challenges people face in getting the right debt advice:
Knowing where to turn for help in the first place: The lack of clear information about the varying support that different advice providers offer makes it very difficult for many people to choose the right service at the outset. Only one in five (20%) survey participants found it easy to find information about debt advice providers.
Getting support that reflects people’s mental health: Many people who disclosed a mental health problem to an adviser say that this information was not taken into consideration in the support they received. Just over half (54%) felt that their adviser took their mental health into account, and only 47% felt their adviser understood how their mental health affected their financial circumstances.
Finding a workable long-term debt solution: The complexity of debt advice plans can overwhelm people and make it extremely difficult to stay on track. Less than one in three people surveyed (29%) said that they understood the different debt solutions offered to them by advisers, while only half (52%) of those who agreed a debt advice plan completed it.
The report also highlights the challenges that debt advisers face in supporting people with mental health problems. In particular, advisers say they would like more training in how mental health problems affect people’s ability to engage with debt advice, and more scope to adjust the support they offer to meet the needs of these clients.
Money and Mental Health is calling on debt advice providers to make it easier for people with mental health problems to access the support they offer — by making information about their services clearer, offering a greater range of communication channels, and equipping advisers with training to better support people with poor mental health.
It is also calling on regulators and funders of debt advice to address the barriers that people with mental health problems face in accessing this support, when shaping regulation and funding contracts for debt advice.
Katie Alpin, Interim Chief Executive of Money and Mental Health, said “With millions more people facing debt problems and distress because of the pandemic, it’s more important than ever that people can access debt advice in a way that meets their needs.”
“This support can be life-changing, but too many people with mental health problems are missing out. The challenges of dealing with poor mental health, and the inflexibility of the debt advice system, can make it almost impossible for people to get the help they need with debt problems.”
“We know that the debt advice sector is facing unprecedented pressures and demand. But taking small steps to make support more accessible would make a big difference in helping more people avoid financial difficulty in the coming months and years.”
Sarah Porretta, Strategy and Insights Director at the Money and Pensions Service, which sponsored the research, said “The coronavirus pandemic has intensified the money difficulties people face, and added extra stress to the lives of many, so we know that people experiencing mental health issues are even more likely to suffer poor financial wellbeing. We continue to work with experts in government, financial services and the third sector to ensure that people with mental health problems receive tailored support and better outcomes.”
“The findings in this report will help inform the work we are conducting to design better debt advice services for all people in the UK as part of the decade-long goals in the UK Strategy for Financial Wellbeing.”
Rachel Duffey, CEO of PayPlan, said “We welcome the Money and Mental Health Policy Institute’s call for accessible debt advice for everyone dealing with mental health problems.”
“The Coronavirus pandemic has been difficult for us all, but we need to ensure the most vulnerable in our society are cared for and have easy access to tailored debt support.”
“A quarter of our clients in an active Debt Management Plan are classed as a vulnerable, and of those affected, over a third have mental health problems. We support clients with a range of mental health issues, from depression, bipolar disorder and other stress-related conditions.”
“Although you may be suffering with some symptoms of mental health issues, they aren’t always severe, and you may not even be diagnosed. I am proud to say that, at PayPlan, our advisers are trained on spotting the signs of a mental health problem, as well as working with clients who disclose their conditions to us in confidence.”
“We agree that a one-size fits all approach for debt advice simply does not work. More needs to be done to support clients with appropriate debt support and I hope this report makes the industry sit up and take notice.”