Debt charities report January spike in calls as worries mount

Debt charities say they are receiving a flood of calls as people worry their finances are becoming unmanageable.

The first weeks of January are often the busiest time of the year for helplines, especially after a particularly expensive period.

Counseling charity StepChange said Monday was busier than any other day last year, and credit advice service Money Wellness said a fifth of those who accessed its services at the start of the year did so between 10pm and 3am.

Dave Murphy said he was trying to get out of debt and creditors’ demands could be overwhelming, but he appealed to anyone struggling to make sure they are seeking help for their financial and mental health.

Money Wellness, which offers free debt and money advice services, said thousands of people accessed its services on Christmas Eve and Christmas Day. Expanded online help allows people to find increasingly more information outside of normal hours, including at night.

Sebrina McCullough, head of the consultancy, said: “The numbers we saw over Christmas and New Year are unprecedented.

“People often feel pressure to celebrate the holidays even when money is tight, and our data shows that many turn to us late at night when they’re feeling most anxious.”

StepChange’s website reached 3,958 visitors on Christmas Day and 15,401 on New Year’s Eve and January 1.

Many may just be exploring their options, but at the beginning of the month the searches came thick and fast. Call numbers are up significantly from last year, although not at the level of the energy crisis of a few years ago.

The Money Advice Trust, which runs the National Debtline, said the first working days of January saw more calls than last year.

Monday was the busiest day in its history, with 1,365 calls coming in.

Concerns are particularly acute for those struggling to pay priority bills such as council tax and rent.

Colder weather could put extra pressure on vulnerable households, with £4.4bn currently owed to energy suppliers following higher prices. cold weather payments Triggered in many areas.

Charities are urging anyone whose debt has become unmanageable to get help as soon as possible, rather than making the situation worse by ignoring it.

This is a view shared by Dave, who has managed to survive adversity.

A few years ago, she found her previously manageable credit card debt becoming a problem when she was unexpectedly laid off while going through a divorce.

“There were two pretty dramatic events in the space of six months,” Dave, who previously spoke to the BBC about his debt problems, said.

“The debt was between £20,000 and £25,000 at its peak. It’s become so overwhelming. You feel like you’re letting creditors down because you want to do what they want from you – but you’re scared, you’re owed rent and sometimes you struggle to get through each day.”

“Once you get into a spiral, it’s really hard to get out of it.”

He now works in insurance, his debts are manageable and paid off, and he said he wants to help others “show them that you can get through these things.”

Figures published by the Bank of England earlier this week have raised concerns that some households are finding it harder to meet daily expenses without resorting to borrowing.

Credit card debt is rising at the fastest annual rate in almost two years in the run-up to Christmas, data has shown.

The annual rate of increase in credit card borrowings increased from 10.9% in the previous month to 12.1% in November. This figure was the highest since January 2024, when it was 12.5%.