It’s good to talk - Removing the stigma of debt

One of the biggest challenges when dealing with debt is talking about it in the first place. There is often a stigma around debt because of the perception that it is simply caused by people not managing their money in the right way.

If you’re facing financial difficulties, it’s common to feel worried or embarrassed – and this might stop you from taking action or seeking help.

The truth is that anyone can fall into financial hardship for a wide range of reasons that are often beyond their control.

But, whatever the reason it shouldn’t stop you from talking about it or seeking help. If we all speak more openly about debt, then hopefully we can remove the stigma.

As a bank that puts customers at the heart of what we do, we’re always here to listen and support you, whatever your situation. There are a number of ways that we can help you depending on your circumstances.

Don't suffer in silence

Remember that it’s OK to speak up and ask for help. You are not alone and it’s not uncommon to struggle with your finances after a challenging period in your life. There are a number of ways that we can help you depending on your circumstances. Our guide will take you through how we can support when the unexpected happens.

It’s also important to recognise when someone you love might need support following a challenging life event. We will only remove the stigma around debt when we encourage people to speak up. At The Co-operative Bank, we work with a number of partner organisations and other helpful services that can provide support to those who are experiencing financial hardship and other difficult times.

Case study: Cormac’s story

*Names have been changed to protect customer confidentiality 

Cormac came to The Co-operative Bank in severe financial hardship, having recently lost his job. He had applied for Universal Credit, but a large deduction had been made from his first payment by the Department for Work and Pensions (DWP), which left him without enough money to pay his bills.

Thanks to The Co-operative Bank's partnership with Citizens Advice, we were able to quickly refer Cormac for specialist support. He was referred to a local food bank and provided with an emergency food voucher so that he didn’t have to spend the limited money he had on food or fuel.

Citizens Advice then worked with Cormac to get to the root to the problem, discovering that Cormac's last wage from his employer and the date it had been paid had caused confusion and resulted in the Universal Credit underpayment.

Citizens Advice helped Cormac to clarify this situation with the DWP and rectify the payment, so that he had some money coming in. They also helped Cormac to review his finances and access further support during a difficult time in his life.

Life events that can lead to debt

There will always be times in life when unexpected things happen that can result in financial difficulty, as well as emotional distress. A sudden illness, redundancy or a divorce or separation are life events that can have an impact on your household finances in ways you might not have foreseen. You might also find that these events have longer term implications for your physical and mental health. These challenges can potentially make your financial difficulties worse if you find that you're struggling to manage your money during a tough time.

Life milestones that may affect your finances

Other, more positive milestones in life can also have an impact on your finances. Graduating from university, having a child or starting your retirement are all exciting life stages, but they will likely have an effect on your day-to-day finances.

Consider how you might need to rethink your budget and spending so that you can keep on top of your finances once these big life changes happen. Our guide provides support and guidance to help you manage your money during these major life milestones.

Mental health support

Mental health issues such as anxiety and depression can often contribute to financial difficulties, or prevent you from seeking help. If you're a customer of The Co-operative Bank, you can contact our support team to receive tailored one-to-one support with your finances. We’ll listen to you and help to find the right solutions for your situation. 

If you’re concerned about your mental health, NHS talking therapies can help. Your GP can refer you or you can refer yourself online to receive effective and confidential support. Other resources include our podcast on mindfulness, with tips on how to relax and look after yourself. You can find our Mindfulness Podcast on iTunes or Spotify or search The Co-operative Bank in your podcast app.

There’s also the option of a debt and mental health evidence form (DMHEF) which is a form that can help your creditors to understand any mental health issues you may be experiencing. You can find out more about this on the StepChange website.

Dealing with economic abuse

Economic abuse is a form of domestic abuse. It involves an abuser restricting a person’s ability to acquire, use and maintain money or other economic resources. The Co-operative Bank has partnered with domestic violence charity Refuge to shine a light on this issue and to provide support to those affected by economic abuse.

Our 2020 Know Economic Abuse Report with Refuge found that approximately 16% of all UK adults identify as having experienced economic abuse in their current or former relationship – but the numbers may be higher as more than twice as many have experienced economically abusive behaviour. 

If you have experienced economic abuse, or if you are unsure but want to find out more, don't suffer alone. Contact these support services and resources.

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