Kevin Peachey
Cost of Living Correspondent
BBC
Rachel chose to take more responsibility to get out of debt
Calls from assistants with debt concerns increased in January as energy bills rise and credit payments for Christmas expenses are due.
The National Debt received 57% more calls in the first two weeks of January compared to the same period last year. The first Monday of the new year was its “busiest ever”, according to the Money Advide Trust, which runs the line.
Affected callers were often late with energy and water bills and many owed money to family and friends, the charity said.
But, as many people have just tackled unmanageable debt this year, some have taken to social media to document their journeys to becoming debt-free.
The BBC spoke to people who once owed thousands of pounds to find out how they got out of debt, or are working to escape.
They have joined a host of charities, such as Citizens Advice – which has also seen a rise in calls – in urging people to address their money worries.
‘Use money when you can’
Rachel says there are spending pressures for parents
Rachel Hargreaves said seeing other parents post gifts for their children on Instagram used to trigger her excessive spending – even as her mortgage and household bills rose.
Now she is using her social media account to record her progress in clearing more than £7,000 and to gain support in the process.
“There’s a community. It’s nice to talk to people in a similar situation,” she said.
It had also helped her take more responsibility for her finances, she said. This included being clear about how much money was coming in and going out, and reducing impulse purchases.
Using money, rather than cards, to indicate how much was spent helped maintain control, she said.
“Remove card details from online shopping accounts”
Emma Quinn
Emma Quinn, 32, has bipolar disorder and has experienced periods of mania accompanied by impulsive and reckless behavior, including spending sprees.
“You had the euphoria of buying something, followed by prolonged, severe periods of depression and self-loathing,” she said.
She once had an income and a manageable amount of credit card debt, but after her diagnosis it had spiraled – at its worst – into debts of £20,000.
“I felt suffocated by it, constantly trying to mix it up, but not reducing the debt,” she said.
Eventually, she opened up to her father, describing telling him about her debt as “the worst day of my life.”
Together, they cut out cards, put caps or freezes on accounts and made a budget and recovery plan. She is now debt free, has a mortgage and is saving for retirement.
Emma said she had removed the cards from online accounts and deleted her saved contact details from retailers’ websites to “slow everything down” and avoid impulse purchases.
She also recommended setting up a trusted contact who is alerted for any large or unusual transactions.
‘Don’t be proud, ask for help’
Paul and Sam admit Yorkshire Pride stopped them seeking help
When their family construction business was hit by rising materials costs, Sam and Paul Helsby found themselves in trouble.
When Paul suffered a stroke at the age of 44, they lost the business and their related personal debts made him wealthy. The couple quickly found themselves £60,000 in debt, with bailiffs at the door and demands streaming through the letterbox.
“We were afraid to open the curtains. We shut the world out,” Paul said.
They don’t have any photos from Christmas before last because that was the one they didn’t want to remember.
They volunteered at a food bank and had met staff at debt charity Christians Against Poverty, which runs a money coaching course. One evening they texted and opened up to one of them.
“As a carpenter, I’ve always been a person who can fix anything,” Paul said. “Saying I can’t fix it, you need to let go and ask for help.”
Soon after, they received food and energy vouchers, and a counselor helped them make sense of their financial “mess.”
Paul was made bankrupt and Sam signed up for a debt relief order.
Getty Images
Now they lock money in virtual pots in their bank account that only open on certain days – like a budget for food every week, and others for birthdays, with extra in a money pot. savings.
This Christmas emphasized time spent with family, rather than money spent on presents, so January was stress-free.
“Apply for Debt Breathing Space”
Rob Small
Rob urges people to start controlling the little things
When Rob Smale’s marriage ended, he said his mental health deteriorated and his financial situation faded.
At one point he owed £35,000 due to spending on several credit cards and gambling.
The 58-year-old is still looking for work, having made more than 300 applications, but his financial situation is now much healthier.
He puts it down to “a strange combination of dealing with big and small things” – ranging from knowing when yellow discount stickers are added to supermarket items, to seeking help from a debt charity .
He said the breathing space program, which gives people temporary relief from creditors, was crucial for anyone to have some control over their finances.
“Ask for help and be aware,” he said. “Sometimes it’s just about creating better habits. It’s best to stay in trouble, but not to panic when you are.”
