Credit, Collections & Insolvency News
Latest figures released by Christians Against Poverty (CAP) has highlighted the depression, anxiety and stress caused by spiralling personal debt.
Three quarters (75%) of the people being helped by Christians Against Poverty (CAP) sought medical attention as they lived with the burden of failing finances. 1,200 debt clients were surveyed with a shocking 38 per cent saying they felt suicidal before accessing CAP’s debt counselling with 11 per cent actually attempting suicide – twice the level of the previous year.
CAP Chief Executive Matt Barlow said “These figures show it’s no exaggeration to say that the levels of stress caused by debt can be life-threatening,”
“On average the people we are working with have more than ten separate debts and the stress caused by ten lots of people chasing you for money can be crushing. Very recently we heard from a distraught single dad who was calling us from his car, looking at the tablets he had stockpiled. He was working all hours but never earning enough to pay the debts caused by his ex-partner. Thankfully, he found the courage to call and we were able to get someone out to him and show a positive way forward.
“Interestingly, our survey also confirmed to us that regardless of whether someone has an on-going condition or a whether their poor mental health is more transitory, 52 per cent said working with CAP on their debts had resulted in an improvement in their mental health.
“We’re glad to see that this theme is also being taken up by the best in the banking and credit industries, as they discuss how to positively handle their customers whose poor mental health means they struggle to engage in the usual ways.”
CAP, which helps some of the poorest and most vulnerable people across the UK, has published its findings at the start of Mental Health Awareness Week 2017 (May 8-14).
TV’s Money Saving Expert Martin Lewis has described the link between debt and mental health as a “match made in hell” and a year ago set up the Money and Mental Health Policy Institute.
Director of the institute Polly Mackenzie, said: “Few things affect our mental health as directly or as profoundly as money; whether we’re dealing with creditors, facing an unexpected cost or managing a sudden drop in income due to redundancy or time off work. But this is a two-way relationship, our mental health can also have a big impact on how we manage our money – shaping everything from our spending to our ability to plan or budget. It’s a vicious cycle and, as the figures from CAP today show, one that can have truly devastating consequences.
“At Money and Mental Health we believe that there is more that banks and others can do to identify people who are struggling and to ensure that they get access to support. We’d like to see financial institutions look closely at their own practices this Mental Health Awareness Week, and consider what more they can do to tackle the devastating link between financial difficulty and mental health problems.”
