Charities are facing an unprecedented wave of demand for debt support following the Christmas period. As with everyone in the sector, StepChange is facing unprecedented levels of traffic and call waiting. On Christmas Day alone, StepChange’s website welcomed 3,958 visitors. This wave underscores the immediate necessity for monetary counseling, even throughout a usually cheerful vacation season.
According to the charity, the Monday after Christmas was its busiest day on record. As a service, it received an astonishing 1,365 calls from individuals in need of help. In fact, outreach more than doubled any one day last year. This jump is a further testament to the public’s growing desperation over their economic circumstances.
As families face higher costs from supply chain shocks and rampant inflation, credit card borrowing has soared. In November, growth in credit card borrowing jumped up with an annual rate of 12.1%. That’s the most positive number we’ve encountered since early January 2024. This increase is particularly alarming as it follows a 10.9% growth rate the previous month, indicating a trend that could impact many families’ financial stability.
Participants learned from the inspiring story of Dave Murphy, who has lived through extensive debt trauma himself. At the lowest point he was in debt to the tune of £20,000 to £25,000. His admission was against the backdrop of the wild swings in his fiscal fortunes during the last half year.
“They were two quite dramatic things in six months,” – Dave Murphy
The post-Christmas period saw StepChange’s website amass a combined total of 15,401 visitors on New Year’s Eve and January 1, suggesting that many individuals were seeking resolutions to their financial dilemmas as the new year began. Surprisingly, a fifth of those who came to Money Wellness services sought assistance during late-night hours between 10 PM and 3 AM. This trend underscores the depth, immediacy, and timeliness of their financial needs.
Colder than normal temperatures this winter have made the situation even more dire for those needing assistance. With inflation-driven energy bills high, this is £4.4 billion in arrears owed to energy companies. Recent government cold weather payments have been triggered in multiple areas to assist those struggling to meet their energy costs.
As Sebrina McCullough from StepChange put it, we are at the thin edge of the wedge right now.
“The numbers we’re seeing over Christmas and New Year are unprecedented.” – Sebrina McCullough
This perfect storm of skyrocketing credit card debt and inflationary pressures has made for a more difficult environment than ever for families. This newfound and unprecedented demand for help highlights an emerging and alarming trend — financial stress is a major crisis. This problem has been acutely magnified in the current economy.
