Dealing with the shame and stigma of problem debt

Getting your head around the world of money can be tough. But, once you’ve got the fundamentals down, everything gets that bit easier. 

A study conducted by StepChange suggests 92% of its clients wish they had asked the debt charity for help earlier*.  

This year, StepChange have spent time exploring debt shame and stigma and want to challenge attitudes to debt to help people access the support they need.  

Debt affects people from all walks of life. While someone's situation may seem normal on the outside, many are silently dealing with financial hardship. 

Breaking down debt shame 

People don't often say why they've delayed reaching out for debt support. But when they do, it's usually put down to a mix of shame and fear. Fear of what the consequences of falling behind with payments may be, shame at the idea of being unable to keep up with commitments and potentially being exposed by bailiffs as failing in some way to the wider community.   

It doesn't help that so much misinformation and out-dated views on debt are still out there. People still talk about getting 'blacklisted' when it's been decades since grocers used blackboards outside their shop to shame their debtors by name.  

TV programmes show rousing bailiff action without always identifying the kinds of debts that can lead to such a situation. It often helps to talk to the experts to find out the truth, before making assumptions about what may or may not happen when we get behind with credit or bills. 

The sad thing about this negativity around debt is that it prevents people from reaching out and getting the help that can prevent the very things they're afraid of. 

Moving beyond debt shame and stigma 

When falling behind with credit commitments or everyday bills, communication is key. Many creditors and organisations know that there are millions of people struggling, and they'll usually be willing to adapt your repayments based on your personal circumstances if they're contacted early on. 

If you need expertise, you don’t even need to talk to someone on the phone. Online resources like Money Helper, or chat-based tools from debt advice services like StepChange, PayPlan or Citizens Advice limit the need to interact with anyone, helping those with shame or stigma to get debt help in a way that could be less stressful.  

These are used by people from all walks of life, whether they have low or high incomes, employed or unemployed. The cost of living crisis has meant that very few people have escaped increased financial pressures. 

Taking the first steps to getting debt help 

Sometimes it can be hard to admit you need help, but the sooner you do, the sooner you'll enjoy the sense of relief that comes from taking control of your financial life. 

And remember you can take it at your own pace. If you’re receiving help and ever want to pause and pick it back up again later, that’s totally up to you.  

How to stay safe when seeking support 

In the age of online scams and “fin-fluencers” it is important to make sure you’re getting debt advice from a reputable source. These four steps are good to keep-in-mind: 

1. Check the provider is approved: Search online for the ‘FCA register’ and check they are on it and whether they have ‘limits’ on giving ‘debt counselling’.  

2. Check what they say: Saying things that are too good to be true, like ‘Government-backed easy and quick debt write-off’ could be a red flag.  

3. Check it is honest: Check their web address, unofficial pages may have unusual URLs. It is also a red flag if they don’t have contact details on their website. 

4. Check your details are safe: You can ask a company what details they want, who they are sharing it with, and how they are keeping your details safe.  

That’s everything for now. Check out our wider blog for other useful articles to help you master your money.  

*Source: Survey of 2,744 StepChange clients – August 2022