How to get out of debt as record number of Brits ‘live on financial knife edge’
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RECORD numbers of families are being crippled by debt in worrying signs that more households are struggling to cope, according to latest figures from StepChange.
The debt advice charity said it received 331,337 cries for help in the first half of 2019.
This is the biggest number StepChange has ever had to deal with in a six-month period and said it shows more families are living on a financial “knife edge”.
The charity said single parents and those with mental health problems are most likely to be under pressure from money concerns.
In the first half of 2019, just under half (43 per cent) of those who contacted StepChange were identified as having an additional vulnerability on top of their financial difficulty.
StepChange considers those who are vulnerable as having more than £200 less in income per month compare to others struggling with debt.
How to cut your bills
IF you're struggling financially, you might be able to cut the cost of your bills to help you get out of the red.
Council tax: You can apply for a council tax reduction on the website but you'll need to meet certain criteria. Your bill could be cut by as much as 100 per cent if you’re on a low income or claim benefits. Carers who look after someone in the household for at least 35 hours a week are also exempt from paying.
Water: Households might be able to save money by getting a water meter but it all depends on how much you're using. To check if it's finacially worthwhile, use the Consumer Council for Water's .
Rent: If you have the space available and your landlord or local authority says it's ok to do so, you might want to consider getting a flatmate. Not only will you split the cost of the rent, but also the other bills.
Hire purchase: If you're struggling to make your repayments on your hire purchase, you can usually end the contract by returning the goods. You will have to pay all the instalments due up to the time you end the agreement but this will limit the amount you owe. Contact for free for more help with this.
Gas and electricty: MoneySavingExpert says families can save £330 on average by switching from Standard Variable Tariffs (SVTs) to a better rate. Use a comparison site like or to see what deals are available.
Mortgage: If you get into debt with your mortgage payments, don't wait for your lender to chase you. Work out what you can afford using the so you can discuss your payment options moving forward with your mortgage provider.
Secured Loan: Your secured loan might be covered by the Consumer Credit Act and if it is, you may be able to apply for a Time Order. This is a special agreement by the courts allowing you more time to make payments. Secured loans not covered by the Consumer Credit Act include gas, electricity or water meters, payments that need to be written off in full, mortgages, credit union loans, loans from an employer and some short term trade agreements.
County Court Judgements: If you receive a County Court claim form talk to a free debt advice service straight away. This includes (0808 800 9060), (0800 138 1111) and the (0808 808 4000).
TV licence: Some households are eligible for a reduced fee or free TV Licence. Pensioners over the age of 75 currently get a free TV licence but this is due to change in June 2020. to see if you are entitled to a reduced or free rate.
Nearly half (49 per cent) of struggling Brits who were considered vulnerable had a mental health issue, while single parents made up a quarter (24 per cent) of those who came to StepChange.
Council tax arrears was once again the most common issue StepChange had to help with, something that's been the case since 2015.
Almost seven in ten people (68 per cent) needed help with credit card debt, and almost two in ten (18 per cent) visited StepChange for energy debts.
Of all those who contacted the charity, 190,484 went on to receive full debt advice.
How to get out of debt
RECORD numbers of Brits are seeking help to manage their debt.
While getting back on track can seem like a daunting task, we've taken a look at what you can do to help you on the way.
Get help for free: There are lots of groups who can help you with your debts.
- Citizens Advice - 0808 800 9060
- StepChange - 0800 138 1111
- National Debtline - 0808 808 4000
Don't ignore bills: Ignoring your bills won't make them go away, as tempting as it may be, and the problem will likely escalate. It's best to tackle debt head on by working out exactly what you owe and when you need to pay it back.
Make a budget: Once you know what you need to pay back, it'll become easier to prioritise your finances. The next step is to create a detailed budget so you can see how much you have going in and going out. Use an online tool like one from to help you do this.
Switch and save: Households can save hundreds of pounds by checking if they can get a cheaper deal elsewhere. In fact, MoneySavingExpert says families can save £330 on average by switching from Standard Variable Tariffs (SVTs) to a better rate. Use a comparison site like or to see what deals are available.
Get a balance transfer card: If you're paying interest on your credit card balance, this can ultimately add to your debt pile. A better option could be getting a 0 per cent balance transfer card. These types of card will let you transfer an existing balance to a new card and gives you the chance to clear it fully without incurring interest. will let you know what deals you will likely qualify for. You'll need to have a good credit rating to qualify for one.
See if you're entitled to benefits: It's important to check if you're entitled to any extra benefits or tax credits if you're struggling financially. can help you see what help is available and there's a benefits calculator on the website. Help ranges from tax credits, job seeker's allowance and universal credit.
Also consider: You can find information about Debt Management Plans (DMP) and Individual Voluntary Arrangements (IVA) on the and on the Government's But make sure you know exactly what you're signing up to as these plans aren't suitable for everyone. Many firms charge a fee for the service, either upfront or one that's incorporated into your monthly payments.
On average, these people had £13,799-worth of non-mortgage debt – an increase of six per cent since 2016.
StepChange found nearly a third (31 per cent) of new people contacting them had more outgoings than income with the biggest average monthly shortfall coming in at £365.
Phil Andrew, chief executive of StepChange Debt Charity, said: "These statistics provide a sobering assessment of the scale of problem debt in this country.
"Clearly more and more households are struggling to hang on and are ill-equipped to deal with any economic shocks the future may hold.”
Phil said the figures "must act as a wake-up call to the Government", with issues around bailiff behaviour and the five-week wait people have before they receive their first Universal Credit payments.
A Government spokeswoman said: "We are determined to help families improve their lives through work, while continuing to support them with the cost of living.
"But we know some families need more support, which is why we spend more than £95 billion a year on working age benefits.
"With Universal Credit, people can get paid urgently if they need it, and 700,000 families will get on average £285 more a month because the system is simpler."
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