Low income impacts debt

Low income impacts debt

29 May 2024

A REPORT by a Christian debt charity has revealed that low income is the main contributor to unmanageable debt.

Christians Against Poverty’s (CAP) annual report is highlighting the effects of poverty and how over two years of high costs is now crumbling the financial security of millions of households and leading them into debt.

In Mid Down, CAP partners with Christ Church Kilmore ad many other local churches to offer free debt advice to local people.

The CAP’s report revealed almost three in five of new clients in debt had income below the poverty line, with 60% of survey respondents having to borrow money to pay household bills and a similar amount borrowed to pay for food, clothing and other living costs. One in seven told the charity 

they skipped meals daily and nearly two in 10 went without heating their home.

The report also revealed that CAP clients in Northern Ireland on average owed over £13,200, had organisations chasing them for payments on 10 different debts and 10% of their arrears were priority debts, often for essential bills like rates, rent arrears, mortgage and gas and electricity.

CAP’s debt advice service helped 67 Northern Ireland households to go debt free in 2023, which is a 14% rise compared to the previous year.

In total, CAP’s Northern Ireland team helped 163 households, clearing over £1.6 million of debt and helping people back over £1 million to creditors.

Mid Down debt centre manager Norman Gibson, said the charity needs more donations to meet the expected increase in demand for free debt service.

“This report investigates how poverty is impacting people in our communities and highlights how two years of high costs have left many low-income households in Northern Ireland trapped under the rubble of debt,” he explained.

“We expect this will lead to more local people needing free debt advice to get back on their feet.

“Imagine yourself struggling to find enough cash to buy a carton of milk, shivering in an icy cold house and being stuck in an endless cycle of borrowing to pay off another debt.

“This is what living in poverty looks like and is often the reality of what we see when we visit people’s homes in Mid Down to provide them with free debt advice.”

CAP client Toni struggled with a range of health issues which led her into debt.

“I’ve been deaf since birth, have been diagnosed with a personality disorder and, following a road traffic accident a few years ago, I’ve struggled with the effects of Post Traumatic Stress Disorder (PTSD),” he said.

“I couldn’t work. The debts mounted because I couldn’t afford to cover the cost of everything. Hopelessness overwhelmed me, like I was stuck in a never-ending cycle.

“Then a debt coach from the local Christians Against Poverty centre came to visit me and he was fantastic from day one. 

She added: “It felt like a rock that had been pressing me down for years had been lifted off my back. I’m due to be debt free in 2024 and I can’t wait.” 

Mr Gibson said: “We are celebrating every single one of the 67 Northern Ireland households who we helped to become debt free in 2023 but there are many more local people that need help.

“At Christians Against Poverty and Christ Church Kilmore, along with 

our supporting churches, we are passionate about helping to clear the wreckage that is being left by debt and poverty but we can only do this thanks to incredibly generous people who donate to fund this life transforming work.

“By donating to CAP, you can join our fight against poverty in Mid Down and make a massive difference to the lives of others in our community.” 

If you wish to donate to Christians Against Poverty, you can do so at cap.org/donate.