Urgent action needed to ensure that people with mental health problems can access the debt advice they need in aftermath of the coronavirus pandemic

'Taking small steps to make support more accessible would make a big difference', says Money and Mental Health Policy Institute

Urgent action is needed to ensure that people with mental health problems can access the debt advice they need in the aftermath of the coronavirus (COVID-19) pandemic, according to the Money and Mental Health Policy Institute.

In a new report, Help Along the Way, Money and Mental Health says that, with almost half of those in problem debt having a mental health problem, symptoms such as difficulties communicating, impaired clarity of thought and reduced concentration or problem-solving skills, can make it difficult to engage with debt advice.

Based on a survey undertaken by the charity of 280 people with experience of mental health problems who have tried to access debt advice, the report highlights three key challenges people face in getting the right debt advice -

• Knowing where to turn for help in the first place: the lack of clear information about the varying support that different advice providers offer makes it very difficult for many people to choose the right service at the outset. Only one in five (20 per cent) survey participants found it easy to find information about debt advice providers.
• Getting support that reflects people’s mental health: many people who disclosed a mental health problem to an adviser say that this information was not taken into consideration in the support they received. Just over half (54 per cent) felt that their adviser took their mental health into account, and only 47 per cent felt their adviser understood how their mental health affected their financial circumstances.
• Finding a workable long-term debt solution: the complexity of debt advice plans can overwhelm people and make it extremely difficult to stay on track. Less than one in three people surveyed (29 per cent) said that they understood the different debt solutions offered to them by advisers, while only half (52 per cent) of those who agreed a debt advice plan completed it.

As a result, Money and Mental Health recommends that -

• the debt advice process should be made more accessible for all clients;
• debt advice providers should communicate with clients in an accessible way, providing them with information, options and well-equipped advisers to meet their needs; and
• regulators and funders of debt advice, including the Financial Conduct Authority and the Money and Pensions Service, should ensure the regulations and funding that shape how debt advice is provided recognise the challenges faced by both people with mental health problems and the debt advice providers supporting them.

Interim Chief Executive of the Money and Mental Health Katie Alpin said -

'With millions more people facing debt problems and distress because of the pandemic, it’s more important than ever that people can access debt advice in a way that meets their needs.

This support can be life-changing, but too many people with mental health problems are missing out. The challenges of dealing with poor mental health, and the inflexibility of the debt advice system, can make it almost impossible for people to get the help they need with debt problems.

We know that the debt advice sector is facing unprecedented pressures and demand. But taking small steps to make support more accessible would make a big difference in helping more people avoid financial difficulty in the coming months and years.'

For more information, see Action needed to ensure people in distress can access 'life-changing' debt support in pandemic aftermath from moneyandmentalhealth.org