Awareness of debt help in the UK and how to fix your finances

Household debt has become a very real worry for many. We analysed Google search data to reveal which areas of the UK searched the most for help with their debt.

We also surveyed 2,000 people to look at whether people in the UK are aware of the support available to help get their finances in order.

Key findings:

We discovered that residents in Leeds searched in Google for ‘debt help’ more than any other 35 cities and towns analysed. Manchester is the second most likely city to search for ‘debt help’. Two northern cities appearing to require help for their debts more than any other destinations analysed.

1 in 9 surveyed are unsure what help is available for them to manage their debts.

A further 6% surveyed stated that they are ignored their debt.

Almost 1 in 5 respondents cited a ‘general rise in living costs’ as to why they are in debt.

Research suggests UK adults are in debt by £3,771

By the end of April 2022, The Money Charity stated that the average adult's total unsecured debt was £3,817.

To understand which areas faced the most financial difficulty, we analysed Google search data to see which of the UK’s 35 most populous cities and towns searched most for ‘debt help’.

Residents in Leeds are searching for ‘debt help’ more than any other city or town analysed

In Leeds, 560 per 100,000 people searched for the term ‘debt help’, more than any other area analysed.

At least these people looked for help with their debt, rather than ignoring it and hoping it will go away.

Residents of Manchester are the second most likely to search for ‘debt help’

It appeared another northern city’s residents struggled with their finances. In Manchester, 511 people per 100,000 looked for advice with the term ‘debt help’.

Other areas where large numbers of people searched for ‘debt help’ include Bradford (200 per 100,000 people), Birmingham (192) and Norwich (183).

The analysis of 35 cities and towns in the UK also reveals that people in Newport are less likely to search for ‘debt help’. 39 per 100,000 searched for the term, with Luton being the second least likely place (47 per 100,000 residents).

While we can see a large number of people are looking for advice on their debt, are they aware of the options available to them?

1 in 9 people surveyed do not know what debt help is available

We surveyed 2,000 people to see how many understood the options and advice available to them.

1 in 9 (11%) surveyed said they ‘didn’t know where to start’ when it came to looking at what was available to reduce their debt. This could mean that without that important help, those people could lose further control of their finances.

18% of people surveyed said they understood where they could go for help and the options available to them.

Women understand where to seek advice for their debt more than men

The survey can also reveal that 9% of women stated they were aware where to get advice and help for their debt. This is compared to just 6% of men.

For those that are unsure, it is essential that you do not ignore any rising debt. Unfortunately, 6% of people surveyed said they are ignoring their debt. But, doing so could lead you into further financial issues.

1 in 5 surveyed stated a ‘general rise in living costs’ affected their finances

To understand what some of the primary reasons are for people falling into debt, we conducted a second survey of 2,000 members of the public. Respondents were able to select more than one answer.

19% surveyed cited the ‘general rise in living costs’ as a reason they believe they are in debt.

Consumer prices increased by 9.9% in August 2022, compared to the previous year. Inflation also reached its highest point since records began in 1992.

1 in 6 surveyed said energy bills are one of the reasons they are struggling

In our survey, we discovered that 16% of respondents stated that their energy bills are the reason they see themselves in debt.

How to start fixing your finances

List your debts

Writing down your debts may be difficult, but it will help you to prioritise your debts and work your way through them in the correct order.

Prioritise paying your rent, mortgage, and utilities ahead of any secondary debts, such as overdrafts or loans.

Work out a budget to repay

The next step is to draw up a realistic budget of what you can repay. You can do this yourself, or there are organisations that can help, such as Citizens Advice and Stepchange.

Once you have that budget, you can see how much money you will be spending on paying off your debt, as well as what you have to spend.

Your budget will also let you see where you can cut back, even if just for a short period.

Find a debt management plan, agreement, or scheme

There are several formal debt-support options in the UK you may not be aware of, for example:

• A Debt Management Plan lets you agree an informal payment plan with your creditors.

• An Individual Voluntary Arrangement is a legally binding agreement to pay what you can afford over typically five-to-six years, after which remaining unsecured debt may be written off.

• A Debt Relief Order is for people with relatively low debt, low income, and minimal assets, and can provide a write-off if eligible.

• The Breathing Space scheme (also called the Debt Respite Scheme) gives legal protections (freezing interest and enforcement action) while you get advice and plan what to do next.

Each option has its own criteria, and the right one depends on your personal circumstances.

Simplify your debts with a debt consolidation loan

If you do have a lot of different debt, such as overdrafts or personal loans, you could look at a debt consolidation loan. Putting all of your debt together means you only have to make one repayment, so it is easier for you to keep track.

If you are looking to apply for a loan, remember to check your eligibility beforehand. This will indicate how likely you are to be accepted, without it impacting your credit score.

Try to make more than the minimum repayments

If you are able to do this by cutting back a little more, making more than the minimum repayment will help clear your debt quicker. But it will also mean that you are paying less interest, which could add more time to your debt.

If you are struggling with your finances, you can also read up on more tips on how to manage your debt.

Methodology:

We analysed Google search data between September 2021 to August 2022 to see which parts of the UK were searching the most for 'debt help'. The total number of searches for ‘debt help’ for each town and city were then divided by the population of that city or town.

We also conducted two surveys of 2,000 people each. The questions were:

• Are you aware of what options are available to reduce your debt?

• What are the reasons that you see yourself in debt?

Any discrepancies in percentage are due to rounding and respondents being able to choose multiple answers.

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