CAP debt counselling proves its value
Telephoning a debt agency for help with your finances may be one of the most difficult calls to make but new research shows it’s likely to put you in the black for years.
Debt counselling charity Christians Against Poverty (CAP), with centres throughout the UK, carried out unique research to discover what happened in the years that followed a client becoming debt free.
The findings showed a staggering 96 per cent had stayed in the black.
“Telling someone your finances are out of control is not easy. We know that because so many of the people who call us are in a desperate situation. Around four out of ten are suicidal, most are skipping meals and many fear losing their homes,” said CAP’s Chief Executive Matt Barlow.
“The truth is, unmanageable debt is very easy to get into and near impossible to escape from without some specialist knowledge. The encouraging news for all of us is that debt counselling works – and not just in the short term. Once people have worked with us, good habits like saving and budgeting stick with them long after we’re involved.”
CAP’S level of service is unique with clients receiving up to 60 hours of support, all clients receiving face–to–face home visits as well as an optional befriending service from members of the church to tackle the common problem of isolation due to poverty.
The Centre for Social Justice estimates that the cost to society per debt case is £2,736 therefore CAP estimates the saving to society from the 3,000 clients who have become debt free since October 2006 is £8.2m.
The research
A total of 120 clients were surveyed. Twenty were taken from each year after
becoming debt free: 20 from six months to a year, 20 from a year to two years, 20 from two years to three and so on – up to six years.
Of those surveyed:
96 per cent said they were still debt free – the remainder said low income and relationship breakdown had forced them back into debt
78 per cent had never used credit again
19 per cent had successfully used credit without getting into
unmanageable debt
83 per cent felt in control of their finances
85 per cent were still using a budget
65 per cent were able to identify positive developments with finances eg buying a home or car, paying for a holiday, made home improvements or paid for further education
48 per cent said they now had savings
53 per cent had a pension, 41 per cent had life insurance
75 per cent had passed onto others skills they had learned
There was a space left in the survey for any other comments:
“Thanks to CAP, I didn’t feel alone. They brought me back from being suicidal
– I wouldn’t be here if it weren’t for them. The personal service is what makes
it. They gave me the confidence I could do it.”
“I have started to get life insurance and I’m saving for myself. I don’t know
what I would have done without CAP. We were living on £15 a week for the
four of us.”
“CAP really helped me at a time in life when I had given up. I had an operation
due to the stress caused by debt. CAP took the pressure off. I can’t fault
them.”
Read more about Christians Against Poverty and the centres in Northern Ireland.