The higher earners in problem debt

Independent

23-03-2025

'I feel ashamed and don't want my loved ones to find out,' is one of the main barriers to getting debt advice, according to StepChange Debt Charity.
I know through my work as a money coach that there's a lot of shame around money.
Money shame is the feeling that you're fundamentally 'bad', stupid, unworthy and lacking in your abilities when it comes to money.
Shame makes people turn inwards, beat themselves up, and stops them seeking help.
And this is a problem. Especially when it comes to debt. Because it means the situation gets worse.
Monday 24 March marks the start of Debt Awareness Week, run by StepChange. It aims to raise awareness and understanding of the stigma around debt and help people take the first step to getting support.
High income, problem debt
If money worries leave you feeling lonely, you're not alone. In my line of work, I know that anyone can fall into problem debt – from the most vulnerable in society to higher earners.
Whatever your income, if there's more going out than there is coming in, then money is always going to be a problem at some point.
As one person shared with me: 'I earn £70,000 a year but I'm £30,000 in debt. I've been living beyond my means for a long time now. My perception of what's affordable has changed as I've earned more but also in relation to friends who have more money to spend than me.
'I struggle to budget. I've been winging it, hoping for the best and using credit when I get stuck. I'm embarrassed and ashamed and I've been hiding it from everyone in my life. I thought I'd be more financially secure at this point in life and it scares me that I'm not.'
It's one thing to earn enough money to service debt. But it takes only one unexpected event – a financial shock – for things to unravel.
Financial shock
Simon Trevethick, head of communications at StepChange, says: 'We saw, five years ago, a pandemic that put in jeopardy millions of people's finances, millions of people's livelihoods. That sudden financial shock is something we've seen time and time again over the more than 30 years StepChange has been working with people in problem debt.
'The reality is that unexpected life events will impact us all at some point, whether that's a job loss, illness or a relationship breakdown.
'These things can have a knock-on effect on our finances and increase the risk of debt problems. This means that people who are on higher incomes aren't immune to getting into financial difficulty, if they're servicing multiple debts and paying out a lot to those each month.
'It's when unexpected life events happen and suddenly those debts do become an issue that it can be difficult to shed the feeling of shame and stigma that's attached to this idea that if you fall into debt, it's a result of your own financial mismanagement.'
Debt stigma
This debt stigma prevents many people seeking help that would aid their financial situation and alleviate their money worries.
StepChange clients wait more than a year, on average, before they reach crisis point and turn to the charity for help, says Trevethick.
'Once somebody does get in touch with us and they've had an opportunity to share that burden, they start sleeping better, their relationship with their family improves, their mental health improves.
'The point of Debt Awareness Week is to highlight just how common financial difficulties are, particularly at the moment, and to say that you're not alone and there is help out there.'
Seek help
If you're struggling to cover your basic monthly outgoings including your mortgage or rent, household bills, and minimum credit card repayments, that's a sign to seek help.
Start by pinning down where you are now. Make a list of who you owe money to, how much you owe and the interest rate you're being charged.
Seek help. Financial guidance website MoneyHelper has a debt advice locator that lists where you can access free debt advice from organisations including StepChange Debt Charity.
Contact your lender. Trevethick says: 'So many people are absolutely terrified to tell their lenders that they aren't able to afford their repayments. Your bank has a legal duty to help you and work out a way forward.'
How did you get here? This is a big one for my clients. It's one thing to draw up a budget and work out how to tackle the debt. But it's important to address how the debt arose in the first place so we can address the underlying issue so it doesn't happen again.