A woman from Manchester shared how her life “changed” after seeking the right help to clear her £40,000 debt.
Kelly Knights, 46, joins the 7.9 million people in the UK highlighted in the Financial Conduct Authority’s (FCA) latest survey currently struggling to pay bills and credit card repayments in January 2024.
Although the figure has dropped from 10.9 million in January 2023, it remains a concerning statistic, prompting calls for people to seek proper help.
For Ms Knights, it was the help of debt charity StepChange, recommended by her loan lender, that helped her “turn a corner.”
Ms Knights said: “With the help of StepChange, I agreed a repayment plan with my lenders three years ago after I had amassed £40,000 of debt.
“In 2019 my marriage broke down so I decided to move house so me and my two children could have a fresh start.
“There was so much we needed to do for the house that the costs just spiralled. It really affected my mental health.”
After speaking with her lender, Ms Knights was pointed in the direction of the debt charity to help. She continued: “I had the number for a year – I kept calling and then putting the phone down because I was scared and worried what would happen. I think that acknowledging you are struggling is really daunting.”
However, Ms Knights said contacting StepChange was “a huge relief” and really helped her turn a corner.
She said: “I am so glad I had the courage to give them a call. They were so helpful and considerate while they explained all my options. I now have a manageable repayment plan that works for me. It felt like a weight had been lifted off my shoulders and really changed my life.”
She added: “I really hope my story can help others who might be in a similar situation – if you are struggling there are people who can help.”
Hailing from the Isle of Lewis, Jasmine Brown, 28, found herself in a similar position after racking up significant vet bills on her credit card when her dog, Lilo, became unwell.
Ms Brown said: “I’ve always been sensible with my money. I took out a credit card at 19 to help build up a credit score.
“Last year my dog Lilo became unwell and I ended up going to the vet on a weekly basis. I needed to use my credit card because it was a massive expense and became a real struggle to keep up.
“My friend suggested I should contact my lender, which is something I have never done before – I didn’t know what to expect. I got through very quickly and while I did find it a little awkward having to explain my situation to a stranger it was all straightforward. They were really helpful and didn’t make it uncomfortable.”
Ms Brown said she had a “good discussion” with the lender about what would be helpful to her and they agreed on freezing the interest on her card for six months.
Ms Brown said: “It gave me the breathing space I needed to get things under control and back on track. I had a really positive experience and wouldn’t hesitate to call in the future.
“I would absolutely say to anyone else in a similar situation to get in touch with their lenders because they can give you helpful advice and practical help to manage your debt.”
In the 12 months to January 2024, the FCA survey found 2.7 million adults sought help from a lender, a debt adviser or other financial support charity because they found themselves in financial difficulty.
Nearly half (47 percent) of those who sought help said they were in a better position as a result.
However, two in five adults who had fallen behind on their bills said they had avoided talking to their lender about their finances.
Sheldon Mills, executive director of Consumers and Competition said: “Our research shows many people are still struggling with their bills, though it is encouraging to see some benefitting from the help that’s available.
“If you’re worried about keeping up with payments, reach out to your lender straight away. They have a range of support options and will work with you to agree on the best one for you. You can also find free debt advice through MoneyHelper.”
