Debt-stricken calls surge - but here's how to cope - Voice of Asia

As energy bills rise and Christmas spending credit card repayments come due, helplines have seen a surge in people seeking help for debt issues in January. The UK's National Debtline received 57% more calls in the first two weeks of January this year compared to the same period last year. According to the Money Advice Trust, which operates the helpline, the first Monday after the New Year saw the "highest ever" call volume.

The charity stated that callers typically have arrears on energy and water bills, and many also owe money to friends and family. However, as many people resolve to tackle out-of-control debt this year, some have begun documenting their journeys out of debt on social media. The BBC interviewed several people who have been, or are struggling with, debt to understand how they are managing to break free.

They, along with many charities like Citizens Advice, are urging people to confront their financial problems, with Citizens Advice also reporting an increase in calls for help. Rachel Hargreaves said that seeing other parents posting gifts for their children on Instagram used to trigger her to overspend, even as her mortgage and household bills were rising. Now, she is using her social media account to document her progress in clearing over £7,000 of debt and gaining support in the process. She stated, "There is a community here. It feels good to talk to people in a similar situation."

She also stated that it has helped her take more responsibility for her finances, including getting a clear picture of income and expenditure, and reducing impulse purchases. She has also found that using cash instead of credit cards gives her a clearer picture of her spending, helping her to stay in control. Emma Quinn, 32, who has bipolar disorder, has experienced manic episodes accompanied by impulsive and reckless behavior, including shopping sprees. She said, "You get the high of buying things, then the long, deep depression and self-loathing."

She used to have an income and manageable credit card debt, but after her diagnosis, the debt snowballed, reaching £20,000 at its worst. She said, "I felt suffocated, constantly trying to move debt around, but it wasn't going down." Eventually, she confessed to her father, describing telling him about the debt as "the worst day of my life." Together, they cut up her credit cards, set limits or freezes on accounts, and created a budget and repayment plan. She is now debt-free, has a mortgage, and is saving for retirement.

Emma says she has removed her credit cards from online accounts and deleted saved personal information from retailers' websites to "slow everything down" and avoid impulse purchases. She also advises setting up a trusted contact to be alerted to any large or unusual transactions. Sam and Paul Hulseby found themselves in dire straits when their family building business was hit by rising material costs. When Paul suffered a stroke at 44, they lost the business, and associated personal debts mounted. The couple soon found themselves £60,000 in debt, with enforcement officers calling and letters demanding payment piling up.

Paul said, "We were scared to open the curtains. We shut the world out." They have no photos from the previous Christmas, as it was a time they did not want to remember. They volunteered at a food bank and met staff from the debt charity Christians Against Poverty, which runs a money coaching course. One evening, they texted one of them and opened up. Paul said, "As a carpenter, I have always been someone who could fix everything. To say I can't fix this, you have to let go and ask for help."

Soon after, they received food and energy vouchers, and an advisor helped them sort out their tangled finances. Paul was declared bankrupt, and Sam signed a debt relief order. Now, they lock money into virtual savings pots in their bank accounts, which only open on certain dates, such as a weekly food budget, and others for birthdays, with extra money going into savings. This Christmas focused on spending time with family rather than buying presents, so there was no January pressure.

When Rob Smale's marriage ended, he said his mental health deteriorated, and his finances spiraled. He racked up £35,000 of debt through spending and gambling on multiple credit cards. The 58-year-old, who is still looking for work, having sent out more than 300 applications, is now in a much healthier financial position. He puts this down to a "strange combination of dealing with the big things and the small things," from knowing when supermarkets add discounted yellow labels to seeking help from debt charities. He says the "breathing space" scheme, which gives people a temporary respite, is crucial for anyone trying to get on top of their finances.

He said, "Ask for help and be vigilant. Sometimes it is just about getting into better habits. It's better to avoid getting into trouble, but when you are in it, don't panic." Citizens Advice says that, first, work out how much you owe, who you owe it to, and how much you need to pay each month. Debt advice charity StepChange says identify which bills and debts are most urgent and pay them first. In England and Wales, people receiving debt advice can apply for a break of up to 60 days as part of the "breathing space" scheme. If you think there is no way to repay your outstanding debts, you may have to consider some form of personal insolvency, such as a debt relief order, individual voluntary agreement, or bankruptcy. Information and support are free, and here are some organizations that may be able to help.