A chance meeting during a local Job Club turned around the life of 56-year-old David Young, who was burdened with a debt of £4,500 just before Christmas 2023. Young, a charity volunteer from Kintulloch, Invernesshire, faced financial struggles that left him unable to afford gifts for his family or participate in festive celebrations.
For years, Young had been grappling with severe depression and the loss of his stained glass art business, which was forced to close in 2018. His financial troubles were compounded by overdue payments on council tax and utility bills, leading him to fall behind and accumulate significant debt. By the time Christmas arrived, he was overwhelmed. “This time of year is dire for me,” Young said. “It just meant more and more debt.”
Young’s only income was a Universal Credit payment of £360 per month. His rent for a one-bedroom flat cost £370, covered by a separate benefit. After paying his essential bills, he was left with no disposable income. The pressures of mounting debt and the emotional toll of his father’s death in 2022 amplified his struggles, making it difficult for him to manage his finances.
“I felt panicked every time a letter came,” Young recalled. The relentless arrival of payment demands led him to ignore them, burying his head in the sand. “I kept putting them away, but the debt spiraled out of control.”
Realizing he needed assistance, Young attended a Job Club at his local church, where he received a crucial recommendation to contact Christians Against Poverty (CAP). This charity specializes in supporting individuals facing financial distress. With their guidance, Young was able to assess his debts: £3,462 owed in council tax, £756 to his utilities provider, and £240 to Virgin Media.
CAP advisors determined that bankruptcy was the most suitable option for Young, given his inability to increase his income or reduce expenses. “I didn’t want to do it as it ruins your credit, but at this point, I didn’t have a choice,” he admitted. CAP assisted him in filing for bankruptcy, a process that usually costs £608, but he incurred no fees due to his benefit status. All his debts were subsequently written off.
During the six-month bankruptcy period, Young faced challenges in obtaining credit or opening bank accounts, and the bankruptcy would remain on his credit file for six years. However, CAP also helped him apply for Adult Disability Living payments, which provided an additional £370 per month, significantly improving his financial situation.
“I’m no longer struggling and I’ve got enough to cover necessities like heating, food, and transport,” Young reported. “My head’s out of the sand so I can see the sunshine now – and the depression is pretty much lifted.”
Ross Hutchinson, debt centre manager at Christians Against Poverty, emphasized the growing need for support in tackling debt. “Churches have been stepping in to help more people, and we see families breaking free from debt, but the need is huge,” he noted. “Our resources only go so far unless more people step up to help us keep doing it.”
For those grappling with debt, various options exist beyond bankruptcy. Consulting a debt advisor is crucial for personalized advice. Alternatives such as repayment plans, Debt Relief Orders, or Individual Voluntary Arrangements may be more suitable. Resources are available, including the National Debtline at 0808 808 4000 and Citizens Advice at 0800 144 8848.
Individuals can also assess their financial circumstances through tools provided by organizations like Money Helper. It is advisable to prioritize essential bills and consider reducing unnecessary subscriptions or luxuries to free up funds for debt repayment. If any savings exist, using them to pay off high-interest debt is generally a sound strategy, while retaining enough for three months’ worth of expenses for emergencies.
The story of David Young illustrates not only the profound impact of financial support but also the resilience of individuals facing overwhelming challenges.
