The 4th November 2024 marks the start of UK Talk Money Week. The annual event is run by Money and Pensions Service, usually falling on the second week of November.
Talk Money Week is a time for debt charities and companies to speak out and encourage people across the country to open up about their money and debt worries.
We want to highlight that although this week has a strong focus on talking about money, Talk Money Week also brings awareness to the importance of having these conversations all year round. For all ages, talking about money is extremely valuable for a healthy financial future – from pocket money to pensions.
Do One Thing
The focus of Talk Money Week is to encourage people to Do One Thing that could help improve their financial wellbeing – whether a small or big act – and encourage others to do the same.
They suggest talking to a child about pocket money, using one of the free tools or calculators, or getting financially educated.
The Importance of Talking About Money Debt
A key focus of Talk Money Week every year is to encourage conversations about unaffordable debt. By having this conversation, you can improve your physical, mental and financial wellbeing.
Money and Pensions research shows that talking about money can help to:
- Make better and less risky financial decisions
- Have stronger personal relationships
- Help your children form good lifetime money habits
- Feel less stressed or anxious and feel more in control
With money conversations involved in everyday lives, we can build financial confidence and resilience to face whatever the future throws at us. For Talk Money Week, start this conversation in any walk of life, including:
- In your workplace
- At home with friends and family
- In educational establishments, or with debt charities
- With the people to who you owe money to
However, we understand that it’s not easy talking about money and debt. In our most recent survey, 44% of our customers said that the fear being judged, or feel embarrassed or ashamed of their debt when the truth is problem debt can happen to anyone.¹
How long do people wait before getting help with their debt?
With a stigma attached to debt, we understand how difficult it can be to reach out and talk about your financial situation. In a 2024 customer survey of existing Trust Deed Scotland® & Harper McDermott customers…¹
- 16.3% got debt advice straight away.
- 34.4% waited up to 1 year before getting debt advice.
- 22.4% waited between 1 and 2 years before getting debt advice.
- 26.9% waited over 2 years before getting debt advice.
Almost 50% waited over a year before finally asking for help with their unaffordable debt.
What type of debts worried our customers most?
No matter what debt you are struggling with, a conversation could help you to find a solution or relief from debt stress. In our most recent survey, we asked our customers what type of debt had caused them the most worry. The results show that credit card debts are the most troublesome type of debt that our customers encounter.
- 79% were worried about credit card debt.
- 60% were worried about personal loans.
- 30% were worried about their overdraft.
- 18% were worried about council tax arrears.
- 17% were worried about payday loans.
- 15% were worried about buy now pay later.
- 14% were worried about gas and electric bills.
- Lastly, 36% were worried about another type of unaffordable debt (including HMRC, DWP, Mortgage arrears, rent arrears and car finance).
What impact did debt have on our customers’ mental health?
We know that dealing with debt can have a direct impact on mental health. It is common for the people that speak to us to link mental health struggles to their debt.
In our most recent survey, we asked our customers more about whether they felt that their mental health was impacted by their debt problem.
- 93.1% of customers lost sleep worrying about their debt.
- 90.9% of customers said that their mental health was impacted before entering into a debt solution.
- 89% of customers said that their mental health improved after entering their chosen debt solution.
Of those who said that debt had impacted their mental health, 98% also said that entering into a debt solution improved their mental health.
While talking about mental health has become more common, there is still a stigma that many people can face. This stigma is also attached to the discussion of debt. However, as difficult as it sounds, it’s important not to beat yourself up over debt. We know that many people across Scotland find themselves in debt. The best way forward is to talk about your money worries.
Start a conversation about your unaffordable debt
Talking about debt can change your future financial situation. It gives you an opportunity to learn about the debt solutions available to you as well as come to the understanding that you are not alone. By opening up and sharing our experiences and knowledge, we can create a brighter financial future for us all.
Start a conversation about debt today.
¹Trust Deed Scotland® and Harper McDermott customer survey, November-December 2023 with 2,246 responses.