Debt Advice

Homeless people often face issues with debt. This can be a barrier to moving forward in other areas. Homelessness services play an important role in supporting people to manage their money.

Context

Debt may either be cause or a consequence of homelessness or unstable accommodation. Problems with debt can contribute to people being financially excluded, which in turn makes it difficult to open a bank account, get a tenancy or access credit.

The Survey of Needs and Provision in 2008 found that in an average homelessness project 44% of clients were affected by debt.

Homeless organisations play a role in offering money advice and support with budgeting. The Survey of Needs and Provision found that debt and financial advice services are provided in 98% of projects. This includes inhouse provision, delivery in partnership with another agency or external referral.

There are a wide range of organisations offering free debt advice, and many are suggested in the 'Further Information' section below.

Financial concerns can be a barrier to people entering the private rented sector. It is crucial that support is given around budgeting and managing money to prevent debt.

In 2005 Centrepoint carried out research exploring the levels and causes of debt amongst homeless young people, including incidences of lenders deliberately targeting vulnerable young people.

Further information

The Consumer Credit Counselling Service (CCCS) is a registered charity offering free, confidential advice and support to anyone who is worried about debt.

Citizens Advice provides online information on debt and other issues, and also a national network of local citizens advice bureau centres. Advisors can provide debt counselling and can negotiate repayments with creditors.

The UK Debt Help & Insolvency Helpline is an interactive online resource offering advice on all debt and insolvency issues.

Piggybankrupt provides practical advice on bankruptcy, created by someone with direct experience of the issue.

The National Debtline is a national telephone helpline for people with debt problems in England, Wales, and Scotland.

Toynbee Hall has produced a range of resources, including an ID guide and a Personal Finance Handbook.

Some credit unions now offer instant loans, and this can be very useful when starting a new tenancy. The Association of British Credit Unions Limited (ABCUL) has a good website where you can search for reputable credit unions.

A significant percentage of homeless or vulnerably housed people are at risk of becoming loan shark victims. There are specialist teams who tackle the problem of illegal money lending. These teams operate in certain areas of the country and take a victim centred approach. They work with the victim to help them deal with their financial difficulties whilst pursuing the loan shark on their behalf. Find out more here.