Debt advice works for nine out of 10 people struggling with serious financial problems, according to latest research from the Money Advice Service.
Independent evaluation of debt advice funded by the Money Advice Service in England and Wales shows that 88% of clients who received face-to-face debt advice from its partners in 2013 went on to take action, such as making reduced payments to creditors, or setting up a household budget to address their debt situation.
As a result, 76% reduced or cleared at least some of their debts within three to six months of receiving advice. 6% were able to pay off their debts in full.
52% of clients surveyed had a diagnosed mental health condition such as depression. However the evaluation shows that people’s overall wellbeing improved after receiving debt advice. 80% of clients said they felt more in control of their financial situation, while 71% said they were less stressed and 67% reported that they were sleeping better.
74% of people surveyed said that they got everything they wanted from their advice session, with a further 19% saying they got some of what they expected.
The most common types of debts prior to seeking advice were rent and mortgage arrears, utilities and credit cards. 52% of clients had multiple types of bills or payments that they were concerned about.
Caroline Siarkiewicz, head of UK debt advice programme at the Money Advice Service, said: “These figures provide further evidence that debt advice really does work. If anyone is struggling to pay their bills or feels stressed about their financial situation, they should seek advice immediately.
“Advice can help you get on top of your debts, and feel better about managing your money.”
Gillian Guy, chief executive of national charity Citizens Advice, added: “People are falling into a debt trap as the gap between rising bills and stagnant incomes hits household budgets. Free, impartial debt advice can stop money problems from spiralling and put people back in control, so it’s more important than ever that people know where to turn.
“These figures show the impact that good-quality debt advice can have. The sooner you seek help, the sooner you can be back on your feet.”
