New debt repayment system talked about

A group which reports directly to the Cabinet Office and the Government’s chief scientific officer meets to discuss various proposals including setting up better co-ordinated “debt care pathways” between health professionals and debt advisers.

The so-called “Foresight Project on Mental Capital and Wellbeing” will also look at the idea of a “voluntary register for bipolar people to prevent them from overspending”.

Other initiatives are also taking place, coming from government, psychiatrists, the debt advice world and even from lenders. They are responding to the fact that mental health seems to be a more widespread factor in debt than was previously thought. The “one in four” statistic – one in four people with debt problems also suffers from depression or another condition – is well-established.

But the real figure could be much higher. As many as “half of all adults in debt may have a mental health problem”, according to the Royal College of Psychiatrists, which published new evidence in October, along with charities Rethink and the Money Advice Trust.

The problem is that debt can also induce depression as a natural reaction. “It’s chicken and egg,” says Frances Walker of the Consumer Credit Counselling Service. “Which comes first – debt or depression?” And Fred (not his real name), a debtor-turned-debt adviser, says: “Debt, depression and divorce, the three Ds, go hand in hand.”

Until four years ago, there was very little assistance for the depressed or other mental health sufferers in this field. The notion that they might have special problems was something that was rarely discussed. Since then the work of some 20 or 30 committed people has pushed the issue up the agenda. So, only a week ago, a new form was launched which enables health and social care professionals to assist those who are unable to control their financial matters.

The “Debt and Mental Health Evidence Form” collects together details of social care and health advisers and some evidence of the problem, and can be used to inform lenders that they need to take special care in this person’s case. “This will be incredibly important,” says Maggie Kirkpatrick, adviser at the CCCS centre in Eastbourne.

Help is at hand: Free debt advice

While those with enough money might prefer to employ the services of lawyers, accountants and other professionals to help them get out of financial difficulty, many people of limited means often require free debt advice. The organisations below can such help.

* Consumer Credit Counselling Service: www.cccs.co.uk and 0800 138 1111

* Citizens Advice: www.citizens advice.org.uk and via local advice centres

* National Debtline: www.nationaldebtline.co.uk 0808 808 4000

Debt woes: ‘I felt suicidal. You lose all sense of proportion’

What to do if you are suffering depression or some other kind of mental illness:

1. Try to tackle your debts before they mount up. By confiding in someone else now rather than in a year you can save yourself money and years of worry.

“The idea that I was going to commit suicide over a debt of £5,600 seems incomprehensible now,” says Fred (not his real name), a debtor-turned-debt adviser. “But you lose all sense of proportion.”

2. Go to your doctor about the anxiety or mental illness aspect. People often attribute sleeplessness and agitation to worry, says Maggie Kirkpatrick of the Consumer Credit Counselling Service (CCCS).

3. Speak to someone else about your finances – a friend but, preferably, a debt adviser. They are used to dealing with these issues and will not be shocked. CCCS takes about 300,000 phone calls a year on debt problems. They can contact your debtors for you, listen to your story and help you get back on course.

4. Avoid doing nothing. You can find that bankruptcy proceedings are started against you if you simply do not reply to your creditors.

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