Nine in ten people delay financial support until it becomes critical

Most people wait until their money worries reach tipping point before asking for help, according to new research by Lowell, finding that nine in ten people delay seeking help until their financial situation becomes critical.

The study, conducted by Lowell to mark Talk Money Week, found that only one in ten people seek help at the first sign of trouble. A third (34%) only ask for help once they can no longer meet their monthly bills and another 15% don’t act until they’ve missed an essential payment. Almost one in five(18%) say they’d never feel comfortable asking for help at all.

While three-quarters of consumers admit to avoiding their money problems, women face higher barriers when it comes to talking about money. More than seven in ten women (71%) admit to keeping a financial secret from a partner or family, compared with 58% of men. Women are also more likely to hide from debt-related contact: 59% have ignored debt letters and 65% have avoided phone calls about their debt, compared with 45% and 52% of men, respectively.

Despite this, there are signs of progress. Seven in the women (71%) believe conversations about money and debt are becoming more socially acceptable.

Commenting on the findings, John Pears, UK CEO at Lowell, said “This is a really powerful reminder that the first step is often the hardest, but it’s also the most important. We see every day how getting help early can make such a difference to someone’s mental and emotional wellbeing.

“We hear it from customers time and again: ‘I wish I’d got in touch sooner’. But I’ve never heard anyone say they asked for help too early.

“The fact that so many people wait until they’ve hit crisis point before asking for help shows how much more needs to be done to normalise money conversations. As an industry, there’s more we can do to help make that first step easier, like giving them multiple ways to get in touch and find the support that works for them – whether that’s online, through an app or by picking up the phone.

“When that happens, the outcomes are better. Not just because debts are managed sooner, but because people start to rebuild their confidence and take back control of their finances.”