Planning for the future
Planning for the future - Dealing with debt
Dealing with debt

More and more people in the UK are experiencing financial difficulties. The increase of low-wage jobs, zero-hour contracts, problems with Universal Credit roll-out, issues arising from benefits and tax-credits as well as the complications of being self-employed or running a small business and more recently the impact of Covid-19, are just some of the contributory factors.

Many people are living on a financial cliff-edge and it only needs a minor change in their circumstances to tip them over it: job loss, relationship breakdown, long-term illness or an accident can all result in a change of income. In no time at all financial security can spiral out of control.

Coping with mental health problems can often be made worse because of financial difficulties, as a result of letters, calls and door visits from enforcement agents or bailiffs.

It can be hard to know where to turn for help when you have financial difficulties, and some of the solutions available can result in more problems! The most important thing is to realise and accept that you need help from someone. You will find that specialist advisors will be able to offer you various routes to financial independence.

The transfer from custody to the world outside prison can mean a rapid exposure to financial problems. The good news is that there are a number of excellent free services available that offer support, help and advice. In addition to financial services some also offer further support, such as free budgeting courses to help you manage your finances more effectively, a food bank, gas or electric top-ups, emergency money or emotional support.
Further information can be found in the Emergency section of this Directory.

Like death, debt is often a taboo subject, meaning people suffering its effects often struggle to talk about it. This causes the financial situation to worsen and so the suffering increases. It doesn't have to be that way. The following pages have further information and details about organisations that are there to help, support and advise you.

Whatever you do, don't suffer in silence. Getting help can provide you with a long-term route to financial security.

Resources

Before making a phone call or attending an appointment with a debt advice charity, it will be useful to have some details to hand. The figures you provide are used by advisors and creditors to help ensure that any repayment agreement is affordable. If you visit www.hardmantrust.org.uk/wp-content/uploads/2019/03/Financial-Statement.xlsx you will find an example of a financial statement, with auto-calculating monthly figures! Even if you don't have debts this form can be a helpful way to look at your monthly budget and make plans accordingly.

You may also find it beneficial to have completed a Debt and Mental Health Evidence Form (DMHEF), if you have mental health problems and are suffering due to your financial circumstances. This form was created by debt and health professionals to help ensure debtors are dealt with sensitively by their creditors. The form will need to be completed by a medical or social-care professional. More information on DMHEF can be found here. www.moneyadvicetrust.org/advice-services/dmhef/ 

A good starting place, for where to go and the options available, is the Money Helper Service's website: www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt They will be able to direct you to suitable organisations that can help or you can use the online information to manage your money problems.

Many prisons provide some form of financial capability training which may be incorporated into life skills courses. It may be worth asking your personal officer if they can speak to your prison’s Learning and Skills Manager and then tell you how you can access any financial capability training on offer at your establishment.

If in the months following release you have built up gas, electric or water debts from your utility provider(s) or are struggling to pay your energy bills you may be able to take advantage of certain benefits, grants and help offered from the government or the utility provider themselves. For more information, see the Emergency section of this Directory.