People struggling with debt, especially mortgage or rent arrears, can turn to free debt charities for advice and help on what to do. Dawn Stobart, director of external affairs at Christians Against Poverty, explains
Home ownership in the UK has hit its lowest level for 30 years and for much of the younger generation, owning a home may feel more of a dream than a reality.
For those two thirds (62.9%) of households in the UK who have been able to get on the housing ladder, those with lower incomes are increasingly struggling to be able to afford mortgage repayments and other basic living needs.
The number of households falling behind with their rent and mortgage payments has increased by 12%, according to the charity Christians Against Poverty (CAP). CAP is a debt counselling charity helping people out of debt and poverty across the UK. CAP runs a free face-to-face home-visiting service, which offers both practical and emotional support to those struggling with problem debt.
In a survey conducted by CAP it was found that 59% of those the charity helps had fallen behind with their rent or mortgage payments in 2017, up from 47% in 2016. Monthly mortgage or rent payments are often the largest bill a household must pay each month; for those in debt this means they are often the first payment to default.
The repercussions of not paying debts such as credit cards and catalogue loans are small in comparison to what can happen if a mortgage is not paid. For people struggling to pay their mortgage, the stress and worry can cause sleepless nights for fear of losing their home.
Maureen and David
A few years ago, CAP clients Maureen and David were struggling with debt. Maureen explains her story:
“I’ve always lived in debt, just like my mum, who always borrowed money to pay bills. When my husband, Dave, received a tax bill for over £8,000, we had no way of paying for it, no savings to fall back on. Dave had a nervous breakdown.
“With a new baby, I was working nights to get some money in but it was nowhere near enough. I was the main breadwinner, but then I got cancer and even after I recovered I wasn’t able to work full-time. Eventually I was made redundant.
“I started sending applications out for credit cards to pay the bills until I got a job again. I extended our mortgage. We were in negative equity with huge monthly payments and, of course, we couldn’t afford it and the lender wanted to repossess our home.”
Sometimes life can mean that it becomes hard to meet all monthly outgoings. Often reasons, such as job loss, ill health or bereavement, are out of our control and can cause detriment not only to finances, but also relationships and health.
In some cases, selling a home is the best option. Although a hard choice, it helps to avoid future repossession and eviction. Maureen continues her story:
“If it wasn’t for the team at CAP we wouldn’t have faced the problems. We were advised to sell our house; they did it very gently, but we knew really it was falling down around us.
“With CAP’s help, we sold our house and were able to pay off our debts. When we got that debt free call, I was more excited that I can express. Freedom is the key word; CAP leads people to freedom.”
In Maureen and David’s debt situation selling their house was one of the only viable options, due to the level of arrears they had. In many cases CAP will work to save a home, liaising with mortgage providers to negotiate lower repayments and prevent eviction.
CAP understands that homes are more than assets of high value, but hold memories and house families, so if money worries are troubling you don’t be afraid to seek advice and make sure you tackle the problem before it becomes much worse.
Free debt help
For people struggling with debt there are lots of organisations available to provide free debt help, which can be accessed online, over the telephone or face-to-face. To find out more about what services are available, use the Money Advice Service locator tool: moneyadviceservice.org.uk/en/tools/debt-advice-locator
CAP offers a free face-to-face service, which is designed to help people who are unable to manage their debt situation alone. CAP visits people in their home, will take all their paperwork, negotiate with creditors and help to recommend a route out of debt.
The charity will stay with the client until they are debt free by supporting them from head office and through their CAP Debt Coach. CAP’s service is designed to help the most vulnerable, those who would struggle to cope using a telephone or online service.
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