With Debt Awareness Week (24th – 30th March) in full swing, Equifax is working with debt charity StepChange to help consumers better understand how to tackle their debt and encourage individuals to engage in open and honest conversations surrounding debt with their loved ones.

Debt Awareness Week is an annual campaign run by StepChange Debt Charity, who provide free and impartial support to anyone struggling with debt. StepChange's recent polling shows why breaking down the stigma around debt is so important, with 89% of people saying they felt a sense of personal shame about their debt and 40% saying they would not speak to their friends or family about debt.*

With rising living costs and increasing reliance on credit, addressing financial challenges together can build trust, strengthen relationships, and pave the way for effective debt management. Recent data from the Office for National Statistics reveals that 56% of adults experienced increased costs between October and November 2024, with 15% turning to credit to cope. Data from Equifax further highlights the growing reliance on credit, with consumer credit card debt levels reaching approximately £71.2 billion, a 5.6% year-on-year increase to the end of December 2024.

Despite the prevalence of debt, it can be a difficult topic to discuss but sharing financial worries can foster trust and collaboration in building a secure future.

There are many causes for debt and money concerns, and it’s important to discuss these challenges with loved ones. While the conversation might be uncomfortable, it is an important step in achieving your financial goals quicker. Different people may be able to support in different ways. While some may have a supportive, money-wise parent, others will have a friend or adult child who can help.

Discussing financial concerns with loved ones can help prevent misunderstandings, ensuring that family and friends are aware of each other's financial situations and avoid unknowingly planning major expenses, such as holidays or gifts, that could create pressure.

Open conversations help the respective individuals to understand the full financial picture, working together to find solutions for managing debt and easing the emotional strain that financial worries can bring. Beyond the practical benefits, talking about money can foster deeper connections, strengthening relationships through honest and supportive communication.

Here are a few steps that consumers can take to begin paying off debt:

Build a Budget: Create a detailed and realistic budget plan to understand your income and expenses. Track your spending for a month to identify areas where you can cut back. Use budgeting apps or spreadsheets to help.

Prioritise Debts: List all your debts, including interest rates and minimum payments. Prioritize paying off debts with the highest interest rates first (e.g. credit cards) to save money in the long run.

Consolidate Debt: Consider whether debt consolidation options are right for you, such as a balance transfer credit card or a personal loan, to simplify payments and potentially lower interest rates. Be sure to compare interest rates and fees carefully.
Automate Payments: Set up automatic payments if funds are available for your debts to help ensure you never miss a payment and avoid late fees, which can damage your credit score.

Speak with your Creditors: Don't be afraid to contact your creditors and explain your situation. They may be willing to offer a lower interest rate, a payment plan, or a temporary hardship program.

Connect with Resources: Seek guidance from free debt management resources like StepChange for personalised support and advice. They can help you find a way to deal with your debt and will support you along the way.

Review your credit report: Reviewing your credit report can help you spot any errors, understand how your debt is impacting your credit score, and identify areas for improvement. Services like Equifax allow you to check your report and receive insights on how to manage your credit more effectively.

For further support on tackling money and relationship challenges, visit the debt management section of the Equifax Knowledge Centre, which includes guidance on how to talk about debt and taking the first steps to paying it off. Equifax also partners with StepChange, a debt advice charity providing free, unbiased guidance on resolving debt matters.