Debt
One of the main reasons people fall into debt is an unforeseen change in circumstances (such as illness, separation or divorce) or unrealistic repayment expectations on the part of the creditor or the lender.
Debt problems rarely exist in isolation: many people face clusters of problems, of which debt may be the main or a component part. Over-indebtedness can be caused by, and contribute to, social exclusion, financial exclusion and poverty. It is also one of the main causes of depressive illness, and can be a barrier to obtaining work. For all these reasons, helping people to attend to their indebtedness is particularly important to us.
We provide a comprehensive service to help people who face problems with indebtedness, including income maximisation, budget preparation and advice, and assistance with legal processes, including Debt Relief Orders, a legal remedy for debt designed for people with no assets and Breathing Space. In some cases, it is possible to get debt written-off, but in the overwhelming majority of cases we can improve the situation for people by putting them back in control and easing the stress or pressure they were under.
Breathing Space
We’re pleased our debt team is able to support clients using the new Breathing Space legislation introduced on 4th May 2021. All of our staff have been prepared to help clients by:
Completing all the required training on all aspects of Breathing Space, including eligibility, the application process and administration of Breathing Space
Discussing any possible issues in our regular team meetings and coming up with solutions to these issues
During the Breathing Space period, our team will help eligible individuals to get on top of their money issues, including empowering them to apply for benefits, going over monthly budgets, and checking eligibility for grants. Our knowledgeable team will support people in problem debt to work towards long term solutions for dealing with money owed, giving them a much-needed opportunity to make a fresh start with their finances.
Elaine Stone, Debt Advice Team Leader, said: “The value of Breathing Space to the people we help will be great. For example, if a person is eligible for the scheme, pausing recovery of the majority of debts will free them from the added stress and worry of their creditors chasing them for a 60 day period. This will give them time to get free, confidential help from one of our team, in a non-judgemental way.
For people who are currently in mental health crisis, this protection will remain for as long as they are in crisis treatment, enabling them to start getting better without the additional pressures of worrying about dealing with people they owe money to.”