Charities helping out as debt problems increase

Charities helping out as debt problems increase

24 September 2014

OFFERING a lifeline to those in debt and the mental health problems that often accompany it, demand for the services of two local charities has nearly doubled.

MindWise and Debt Action NI joined forces four years ago in Downpatrick and now help an average of 20 clients a month.

Debt Action NI advisor Colm Chambers is based in the Ballymote Centre in Downpatrick where he works closely with the MindWise team in English Street. He said when they first started in 2010 an average of just 12 people sought help every month and that the recession had continued to have a major impact.

“Demand has been increasing year on year,” said Colm. “Initially most of the problems were related to vulnerable clients — people on benefits who were getting into difficulties with rent arrears or pay-day loans.

“In 2012 it basically widened out to cover everyone. A lot of problems came from people who were unemployed and in mortgage arrears and worried about repossessions.

“Also with credit being available easily people got into a lot of difficulties with credit cards and personal bank loans.”

Colm said problems with the building trade and associated trades had a significant knock-on effect on people’s finances locally.

“That had a big, big, impact,” he said.

“A lot of people had never been in that position before. It was a big shock. It has had an affect of people’s own mental health.

“It caused a lot of friction in families... a lot of people separated. It became a domino effect.”

Before working with Debt Action NI, Colm worked as a financial advisor for 30 years before the recession impacted his own business.

“Whenever the recession came it affected everyone,” he said. “It affected my business as well. Most of our business was done on the back of mortgages. By chance I saw MindWise had a small ad in the paper and I have been here ever since.

“There are 70 [Debt Action NI] advisors in Northern Ireland, I am the only one who has been seconded to a mental health charity.”

Colm explained that the service they provided was open to everyone. He said people could came in to his office “traumatised” after numerous phone calls from creditors but that their fears could often be quickly allayed.

“I explain everything, dispel a couple of old wives’ tales, such as fears about bailiffs, and let them know exactly what can be done by the courts,” he said. “I try to put them at their ease and 80 per cent of that is done at the first meeting. Then they become a bit more relaxed.

“I gather all the information, assess what action can be taken, look at a number of different avenues. We deal with all the creditors, we handle all the phone calls and do all the paper work.

“There is nothing that cannot be solved.”

Colm said that when an agreement could be reached between a client and a creditor his job did bring a lot of satisfaction. While it depends on individual circumstances, he says creditors do take mental ill health into account.

“I had a referral from a client who had mental health issues and phone bills and credit cards,” he said. “He was finding it quite difficult. The phone bill was £800 and credit cards £2000. It was having a detrimental effect on his mental health.

“His attitude was; ‘Is somebody going to come to my door?’ I allayed all his fears. I approached the credit card company and BT to explain to them what the problem was and because of the mental health issue they were able to write off the debt.”

Debt Action NI is a free debt advice service that has been operating in Northern Ireland since 2009. Since then they have been able to help 5,500 people deal with over £100.5m in debt.

It also works in partnership with Payplan, the UK’s largest provider of free debt solutions. The purpose of the project is to help people manage their debts better and empower them to become more financially capable.

Jim Darragh, the manager at MindWise, said a lot of people with mental health issues found the recent changes to the benefits system “extremely stressful”.

“It has been a very worrying time for them, feeling they may be forced to go back to work and they maybe have not worked for 20 or 30 years,” he said.

“Demand for our services has increased over the last three years. With the closing of the long stay [mental health] wards there is not really the same kind of support.”

Whether exacerbating an existing problem or the pressures of debt leading to stress and depression, Jim said the problems were closely linked.

“One in five people in debt have a mental health issue,” he said.

“In rural areas in particular, people can become very isolated but the help is out there. Your GP is the gateway for all these services. Your GP is your first port of call.”

The Debt Action NI (MindWise) service is a free, confidential and impartial service open to anyone concerned about their finances. Face to face appointments are available and home visits can be made to those who are most vulnerable. For more information contact the Ballymote Centre in Downpatrick on 028 4461 6527.