The cost-of-living crisis is hitting families harder than ever before, says the chairman of the Suffolk Coastal debt centre. The centre launched in August 2018 with the aim of helping those in debt reach the point they will debt free in up to five years. It is one of a number of centres in Suffolk working in partnership with national charity Christians Against Poverty (CAP). The service’s trained and authorised debt coaches hold private, one-to-one meetings with clients to understand their finances and that enable CAP nationally to contact their specific creditors to find a way to clear the debts – securing interest freezes and debt moratoria.
However, Rev Nic Stuchfield, chairman of the Suffolk Coastal Debt Centre, says it is getting increasingly difficult to help clients find a solution that balances their finances.
“Back in the beginning, I would say for around 75% of people we could find a budget to pay off their debt without write-off in five years. Now, with the increases in utility bills, food prices and transport costs, we are finding very few of our clients are able achieve this and to come up with a budget that works. In fact, with many we find it is not possible to come up with a budget in which income exceeds expenditure even after their debt has been written off. People are in quicksand – even if their debts are written off, they still cannot break even," he said.
To combat this, the Suffolk Coastal Debt Centre is also running courses in Life Skills and Money (i.e. financial education) to give people early advice on how to manage their finances and plan for the future with the aim of stopping people getting too deeply into debt. The first eight-week CAP Life skills is now underway, with additional CAP Money sessions for adults, secondary school and primary school pupils on the way. It has also set up a Debt Centre Relief Fund for people to contribute to. This enables those who can afford it to donate their £400 energy price subsidy to Debt Centre users who cannot afford to heat their homes.
CAP’s Annual Report revealed the average household debt in the region is currently £18,952, with the average time to clear those debts averaging at 28 years. The service is based at St John’s Church in Saxmundham, which is part of the Diocese of St Edmundsbury and Ipswich, although the scheme involves churches of many other denominations across the large East Suffolk catchment area of the centre.
Rev Stuchfield said the CAP Debt Centre’s expert team and dedicated volunteers not only provide financial advice, but also friendship.
“For most people the fact that someone cares and is interested in helping them is a relief,” he said.
“People often can’t help but feel like they are just a number when seeking help. Our team of people – our core leadership team, financial experts and 40 plus volunteers – are amazingly pastoral and kind and go to great lengths in not only helping financially, but to be there as a friend too.”
To find out more about the services of the Debt Centre and course information in your area visit: www.capuk.org/get-help.