Debt agencies experiencing growing demand for help

Next year sees the arrival of the Commonwealth Games in Scotland, and everyone is waiting with bated breath to see how the various countries perform in their specialist areas. Scotland will be no exception. We have quite a history of success in the Commonwealth Games and swimming is an event which always attracts attention.

Now, you are probably wondering what is the connection with that and debt. Think of “sink or swim”, and let me explain.

Many of us are well aware of the recession, and we are told that we are coming out of it. However, the agencies across Scotland who are dealing with people in debt are not seeing any signs of a decrease in demand for services – rather, more people are seeking advice, and from all walks of life. Debt knows no barriers in terms of occupation or profession. This is new territory for many people who have found themselves without work, bonuses or commission and are now having to tighten their belts. Indeed, many who have survived on benefits for a long time are used to having to budget carefully and having to deal with income shocks.

‘Bedroom tax’

It all sounds very easy just to say that if we cut back it will all work out, but people are having to pay much more for the essentials, including food, fuel and transport, so it is a triple whammy.

There has been much written about welfare reform and the impact of it, particularly what has become known as the “bedroom tax”. I really worry for many families in Scotland who are really hard pushed and trying desperately to keep things together. Why in this day and age are so many now reliant on food banks? I refute the suggestion by some that it is because they are better advertised, and not that more people are in need. In this society in Scotland we should have adequate provision in welfare terms, and people should have dignity.

We all know that we need the economy to work better and get people back into employment, but there needs to be more support for our young as well, who are really struggling to not just get a job but also to get on the housing ladder. Many families are under pressure as they have adults in the household who are not contributing to the running costs, and this puts a strain on relationships as well.

Other concerns I have are around the growth of gambling problems, particularly with young impressionable men. Let us not forget, however, that more women are involved now in online bingo, which is seen as a good social network, especially if you feel isolated. I am certain you can see the problems that might emerge and can turn into a problematic debt situation.

At the other end of the spectrum we have many more older people in debt. Many have tried to help their families and now they find themselves struggling with the higher costs of living. Unlike others, they don’t have the means just to step out and get a new job, perhaps because of ill health, so they feel trapped.

Drowning in debt

So is it all doom and gloom? It is important that where people identify and acknowledge a debt problem that they seek advice. There are many agencies across Scotland which will offer advice for free. There are also others who offer advice, for which there is a fee.

In the money advice sector, people when they seek help often feel they are drowning in debt, with no way out of it. With the help of advice agencies, who are impartial and non-judgmental, many thousands of people over the years have started to feel they can swim again and participate in everyday life.

Feeling trapped by debt causes real issues in terms of both physical and mental health, and the costs to the National Health Service are great, as often people are offered a “social prescription” which will only dull the pain. We need better recognition of the value of money advice and what it prevents: for example, homelessness, severe mental health problems and the break-up of families.

So let’s see more people swimming rather than drowning in debt.

• Yvonne MacDermid is chief executive of Money Advice Scotland, www.moneyadvicescotland.org.uk

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