Huntingdonshire faces a “rising tide” of debt as the cost-of-living crisis continues to stretch household incomes, an investigation by The Hunts Post has revealed.
Figures obtained exclusively by this newspaper reveal more than £1.5 million worth of personal debt has been written off in the district in the last two years alone.
Charities Money Advice St Neots (Mast) and Huntingdon Area Money Advice (HAMA), which both provided data, warned debt has become a “huge issue” in Huntingdonshire.
Kathryn Pickering, centre manager at Mast, a charity providing free and confidential debt advice, said that while energy bills have fallen from their peak, other living costs are straining households.
She said: “We’re seeing time and time again that people are just about making ends meet and with food and housing costs increasing, people have been squeezed.
“We’re supporting people facing huge dilemmas, whose lives are being impacted in so many ways from marriage breakdowns to poor mental health because of the effects of debt.
“These figures are the tip of the iceberg but we’re seeing a rising tide of debt, and the number of people requiring support is going to keep growing because of the cost-of-living crisis.”
Figures published by the Insolvency Service in March showed 10,136 people across the UK entered insolvency in February, a rise of 23 per cent on the same month last year.
In April, StepChange revealed it provided full debt advice to more than 183,000 clients across the UK, an increase of 10 per cent year on year.
Simon Trevethick, head of communications at StepChange, said: “Personal debt has long been an issue, but the cost-of-living crisis is pushing people to the brink.
“We are seeing worrying trends emerge, as our recent polling found that 40 per cent of people are finding it difficult to keep up with bills and credit commitments.”
“What’s more, the average debt of a new StepChange client now stands at £15,000, the highest level for a decade.”
More than 200 people across Huntingdonshire have approached HAMA for confidential debt advice since 2022, while Mast is currently handling 34 live cases.
The figures also show that of the £1.3 million worth of debt cleared by HAMA, more than £174,000 was cleared by bankruptcy.
Meanwhile, 77 Debt Relief Orders (DRO) helped to write off £1.1 million.
DROs were introduced in 2009 and clear existing debt on everything from council tax to energy bills and rent.
They provide debt remedy for those who, as of 28 June, owe £50,000 or less, have a low income and own few assets.
Roger Hickling, senior adviser at HAMA, said: “The vast majority of the clients who come to us are in rented accommodation rather than those with mortgages, which suggests that debt issues are hitting those on low incomes hardest.
“Debt undoubtedly has increased and perhaps led some from the ‘just about coping with a bit of help from family and friends' category, to 'I don't know how I am going to cope', and we’ve seen more energy debt in the last two years.
“Every client is different, but there are multiple and overlapping reasons for debt. Perhaps the top four reasons we see, which themselves can overlap, are breakdowns in relationships, loss of employment, ill health, and addictions.”
Nick Blencowe, chief executive of Citizens’ Advice Rural Cambs, added: “Personal debt affects people’s mental health and sorting this out can feel overwhelming, if someone is also isolated, then the effects can be considerably greater.
“Unfortunately, many of our clients try to resolve their issues themselves when they need professional help sooner and this can exacerbate their money worries.
“Coming to us as soon as problems arise, is usually the quickest way to alleviate this burden.”
Who to approach for support?
If you are struggling with personal debt and live in Huntingdonshire, there are a number of charities providing free and confidential advice.
If you live in St Neots and require support managing debt and budget coaching, you can contact Mast on 01480 260234 or help@mast.support. You can also contact HAMA on 01480 418866 or help@huntsmoneyadvice.co.uk if you live in the Huntingdon/Ramsey area.
Citizen’s Advice Rural Cambs offers a range of advice on debt, including how to deal with creditors. You can contact them on 0808 278 7807 or visit https://www.citizensadviceruralcambs.org.uk/
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