money worries – The NEN – North Edinburgh News

Embarrassment stops Scots from seeking financial help

Nearly 4 in 10 say they wouldn’t ask for financial help if they were in trouble due to embarrassment
81% say they feel anxious about their financial situation
44% say they feel more worried about their financial situation now, compared to a year ago

New research has revealed that those in Scotland are the most at risk of financial turmoil due to embarrassment about their financial situation.

The findings, which were part of a UK-wide study by financial comparison website, NerdWallet UK, found that those in Scotland – alongside those in the South West – are the most likely to not seek help should they find themselves in financial difficulty due to the embarrassment around the topic.

Almost two-fifths of those surveyed said that embarrassment would stop them from seeking help, while just under one-third would be concerned about the impact doing so would have on their credit history, as well as worries around confidentiality. The same number also believe they can manage on their own and do not need external help.

Other reasons which would stop Scots from getting help include, the cost of getting financial advice (29%), and worryingly, just over a quarter said they were not aware of any organisations to help them with debt, or how to contact them.

If I was struggling financially, the following would stop me from asking for help – Scotland:

Reason	Percentage who agreed
I would feel embarrassed	37%
I’m worried about the impact on my credit history	31%
I’m worried about confidentiality	31%
I think I can manage on my own	31%
I don’t want to pay for advice	29%
I don’t think my financial situation is serious enough	28%
I’m not aware of the debt help organisations or how to contact them	26%
I don’t want to speak about my problems on the phone	23%

This is despite 81% of Scots saying they feel anxious about their financial situation, and 25% saying these feelings are daily occurrences.

Furthermore, 44% of respondents in Scotland say they feel more worried about their financial situation now, than they did a year ago.

When asked who they would go to or help first, almost half (48%) said they would speak to their partner or close family member, while 12% said they would speak to a friend.

Adam French, senior editor at NerdWallet UK, said, “It’s worrying that so many Scots would not get help due to embarrassment. Struggling financially is never something to be embarrassed about, and if the cost of living crisis has taught us anything over the last 18 months, it’s that financial trouble can happen to any of us, at any time.

“Getting help when you first find yourself in financial difficulty, and not burying your head in the sand can help to relieve a lot of stress and anxiety around money, and find a way out before things get worse.

“There are plenty of independent experts and companies available to speak to, for free, including Granton Information Centre, the Citizen’s Advice Bureau and Step Change. Everything is confidential, and discussing concerns will not impact your credit score.”

For information on NerdWallet, and to view the full dataset, visit:

https://www.nerdwallet.com/uk/personal-finance/money-and-mental-health-study/

Money worries? Local help available

WORRIED about your energy bills?

Find out about help you can get to heat your home more efficiently and reduce your heating bills at: http://homeenergyscotland.org

You can find local support and advice at:

http://edinburgh.gov.uk/costofliving

Granton Information Centre

Advice on welfare rights, housing, rent arrears, debt and money.

Call 0131 551 2459 or 0131 552 0458

Email info@gic.org.uk

The nightmare before Christmas

Independent Age: Scots sacrifice essentials to ensure they can buy for others this Christmas

Many people in Scotland are facing a bleak run up to Christmas, as they cut back on essentials like food and heating to ensure they can buy presents for loved ones.

In a national survey of people aged 50 and over by older people’s charity Independent Age, a third (33%) of Scottish respondents said that in order to spend money on loved ones this year, they would reduce spending on essentials for themselves as Christmas approaches.

Of those who said that they will reduce their spending:

69% will socialise less
44% will cut back on heating their homes
41% will spend less on food
37% will cut back on the electricity they use

The findings come as inflation continues to rise, with the official rate recently soaring to 11.1%.

Scottish Government statistics show that 1 in 7 (150,000) older people in Scotland are living in poverty, with 120,00 pensioners living in persistent poverty (meaning they’ve spent at least three of the past four years in poverty).

Claire Donaghy, Head of Scotland at Independent Age, said: “It’s extremely alarming that those in later life are being forced to cut back on essentials so they can buy presents for loved ones.

“Older people living in one of the world’s richest nations shouldn’t have to risk damaging their health by reducing the food they eat and using less heating during the coldest months.

“For many in Scotland, the festive season is something to look forward to, but increasing numbers of older people are being hit from every angle financially.”

Cost-of-living fears this festive season

The immense financial pressure faced by millions of older people this winter is forcing many of them to cut back on essentials – as well as foregoing presents for others.

In the same survey over two fifths (41%) of people in Scotland said they are planning on spending less money at Christmas this year, compared to last.

When asked how they plan to reduce their spending, worryingly, 49% of people planning to spend less said they would reduce spending on food, and 47% said they would spend less on heating and gas.

When asked about general Christmas spending, 56% who plan to spend less at Christmas said they plan to spend less on presents for their children or grandkids, and this number rises to 78% when asked about other friends and family.

There will be even fewer ornaments and lights to enjoy this festive season, with 39% saying they will reduce spending on decorations that require electricity. These figures paint a bleak picture of how the cost-of-living crisis will stop many from enjoying their usual Christmas.

End the Pension Credit Scandal

With many households struggling to cope financially this December, Independent Age is calling on the government to ensure older people are receiving the support they are entitled to, including Pension Credit.

For people over 66, Pension Credit acts as an income top-up, and is a gateway to additional support, including the Warm Home Discount and Council Tax Reduction. It is also being used as a mechanism by the government to decide who gets some of the vital cost-of-living payments announced in November.

In what the charity is calling a ‘national scandal’, Independent Age estimate that almost 80,000 people who are eligible for Pension Credit in Scotland are currently not claiming, resulting in £160 million being missed out on by older people in Scotland.

Claire Donaghy continues: “The government was right to uprate Pension Credit by inflation in the Autumn Budget, but the hard truth is too many older people are still not receiving this vital income top-up that they are eligible for. Without it, many people in later life are facing a stressful and dire Christmas, forced to cut back on food and heating, which can be detrimental to their health.

“It is scandalous that people are struggling when billions of pounds has been set aside for them and the money is sitting there unused. The government must commit to a Pension Credit strategy to prevent hundreds of thousands of people missing out.”

Independent Age has launched a petition calling on the government to end the Pension Credit scandal and announce a strategy to increase uptake.

You can sign the petition here: End the Pension Credit Scandal

Scots urged to seek financial support and access the benefits they are entitled to

A new campaign which will help people in the Lothians struggling financially get support and access the benefits that they are entitled to has been launched.

The campaign comes as a survey reveals that just over 1 in 5 (21%) Scots living in the Lothians, wouldn’t feel comfortable receiving any type of financial benefits or grants, even if they were eligible, and seeks to address the stigma that people may have around claiming benefits.

The YouGov survey, commissioned by the Scottish Government, also found that people in the Lothians were concerned about being judged by others for receiving benefits, with 17% saying that they were concerned about being judged for receiving Universal Credit, and 10% for receiving Child Tax Credits.

These results indicate that there may be people in the Lothians who are eligible for financial support, whether that be benefits or grants, but aren’t taking the help that’s available because of how others may perceive them for doing so.

The survey comes as the Scottish Government launches a dedicated website – www.moneysupport.scot – to help those experiencing financial difficulties find the support they need.

The Money Support Scotland website contains information and contact details for a range of organisations able to provide information on benefits people could be eligible for, where to go for free and impartial debt advice and how to apply for affordable credit.

The Money Support Scotland campaign is working in partnership with Citizens Advice Scotland and Advice Direct Scotland, which both help people understand what benefits they might be entitled to and how to apply for them.

The Citizens Advice network in Scotland offers free, impartial and confidential advice, with trained advisers able to help explain how people can maximise their income through benefits and grants, cut costs and help manage debt.

Its Money Map tool helps people check which benefits and grants they might be entitled to, as well as eligibility for council tax reductions and support with housing and energy costs. Advice Direct Scotland also provide financial advice and offer a free benefit calculator on their website.

Citizens Advice Scotland Chief Executive Derek Mitchell said: “People shouldn’t feel uncomfortable about accessing the support they are entitled to. That’s how the welfare state works – we all pay in and get support when we need it. That’s what the money is there for, and after the past few years people should be confident about getting the payments they are due.

“The reality is people are facing a perfect storm this winter of rising bills and falling incomes, so maximising your income and getting all the money you are entitled to is really important to help with bills and spending.

“Citizens Advice Scotland is proud to partner with the Scottish Government on this important campaign to ensure people get the help they need this winter. The Citizens Advice network can give people help in a variety of ways and during the pandemic we unlocked around £147 million for people through things like social security payments, employment entitlements and debt reductions.”

There’s a wide range of support available to Scots of all ages from one-off payments to help with the cost of school uniforms to ongoing support with living costs.

To find out where to seek advice on accessing the range of financial support available, visit www.moneysupport.scot.

A third of Scots don’t feel financially secure in current Covid-19 climate

A new survey from Royal Bank of Scotland has found that a third (33%) of people in Scotland don’t feel financially secure or believe they have enough money to live comfortably and afford essential payments (e.g. groceries, utility bills, mortgage and rent payments) in the current Covid-19 climate.

Despite this, three in ten (29%) Scots surveyed admitted that they would be uncomfortable speaking to friends and family about their current financial status and three in ten (30%) said they have previously lied to make themselves seem more financially secure than they are.

Almost two-thirds (63%) of Scots surveyed also acknowledged that they would feel embarrassed to ask family or friends to borrow money, however, more worryingly, three in ten (29%) said they often and always feel depressed when they think about their current financial situation.

The research comes as Royal Bank of Scotland launches its new Financial Flex campaign that will encourage Scots – especially younger generations – to start talking more openly and honestly about their finances to combat growing worries around money. Through a Royal Bank Financial Health Check, anyone, whether a customer or not, can get free advice on how to manage their money better.

Psychotherapist Kelly Hearn, an accredited UK Council for Psychotherapy (UKCP) member, reviewed the findings. She said: “Financial anxiety is high and increasing in this pandemic, particularly among young adults.

“Money worries can lead to enormous shame and so are difficult to discuss. They cut straight to issues of self-worth and feelings of ‘not enough.’ Often people suffer in silence which only compounds the issue. A vicious cycle emerges where financial stress causes mental stress which affects physical health as well, particularly when coping mechanisms like binge drinking or eating are enacted.

“Financial anxieties affect most of us and yet are rarely discussed. It is time to address the taboo subject of money more openly as financial wellbeing is an important pillar of mental and physical health.”

The free financial health check service is available from Royal Bank. It is a review with a highly trained senior personal banker and is currently offered by video.

During the appointment, the senior banker will consider all areas of finances to help customers make the best decisions about what they feel is right for them. The review can also be completed by telephone if required.

To book or for more information, visit:

https://personal.rbs.co.uk/personal/financial-health-check.html

Women’s mental health hit by financial worries

Research shows women more likely to suffer from poor mental health than men thanks to heightened financial concerns – and young women hit worst

Women suffer from greater money worries than men, a study has shown this International Women’s Day.

Research has revealed that just under half (41%) of working women in the UK have money worries, a figure that dips significantly down to less than a third (32%) for men.

Statistically, the figure is also higher in younger women with 55 per cent of women aged 16-24 reporting money worries, and 53 per cent of those aged 25-34.

The recently reported research was carried out by Salary Finance, an employee financial wellbeing platform, and also revealed the shocking impact of these figures on women’s mental health.

The stats show that women with money worries are much more likely than their male counterparts with the same concerns to be suffering sleepless nights (51% to 43%), anxiety and panic attacks (62% versus 57%) and are more likely to have depression and suicidal thoughts (71% versus 65%).

These figures mean that when compared to those with no money worries women with financial concerns are over five times more likely to have anxiety and nearly seven times more likely to have depression. For men with financial worries, it is far less – they are 1.3 times more likely to say they’re suffering from anxiety and/or depression due to financial problems.

It’s also more likely that you will run out of money before pay day if you’re a woman, according to these statistics. Over a third (34%) of women are running out of money before pay day each month, compared to just under a quarter (24%) of men. Younger women were again much more highly impacted, being much more likely to run out of money before pay day.

Of course, the impact of maternity leave is keenly felt by the female workforce. Of those surveyed that took maternity or paternity leave, a massive 73 per cent of women said they took on additional debt as a result, compared to just 27 per cent of men. Yet resulting childcare costs did not cause significantly higher levels of stress for women.

Asesh Sarkar, CEO and co-founder of Salary Finance, commented: “In 2020 it’s disheartening to see such a discrepancy between financial wellbeing in men and women. Our extensive research has shown the crippling impact that money worries can have on the UK workforce, and see these figures that show women suffer much more.”

Although there were many differences the survey did reveal that there are no notable differences in the approach to savings between women and men, suggesting attitudes and behaviour play a far bigger role in saving habits than gender.

Another similarity between men and women was an apparent unwillingness to discuss their finances. This highlights a general attitude rather than a gender-specific issue.

Asesh added: “Whilst the figures show that women are suffering more as a result of poor financial wellbeing, it’s important to remember that financial stress and concerns affects a wide range of people, regardless of gender, age or salary.

“There is a need to tackle the stigma attached to discussing financial concerns and this is where financial solutions in the workplace can help. It is therefore important for employers to take an interest in the financial health of their employees.

“Our research has shown that around 77 per cent of workers feel they can trust their employer when it comes to sharing personal information. This really highlights the role that employers can play when it comes to tackling the issue of poor financial wellbeing amongst the UK workforce.”

Money worries? Start talking!

Wednesday 14th November 11am – 2pm

The Prentice Centre, Granton Mains Avenue

(opposite entrance to Edinburgh College Granton Campus)

The event brings together multiple agencies who are working to tackle poverty and inequality and assist people in a range of ‘financial capability’ areas including income maximisation, debt advice, help with fuel and housing costs, free school meals and clothing grants, housing support, employability, low cost credit, etc.

Organisations taking part in the Prentice Centre event are:

Granton Information Centre (hosts)
Muirhouse Housing Association (event sponsors)
Changeworks
Family & Housing Support
Scotcash
Y People
Community Renewal
Circle
West Granton Housing Co-operative
Advice Shop
Dunedin Housing Association
Fresh Start
Turn 2 Us

For further information telephone Granton Information Centre 0131 551 2459 or 0131 552 0458 or email michelle@gic.org.uk or david@gic.org.uk

New drive to tackle debt

A Scottish Government campaign will highlight help for people struggling with debt, Enterprise Minister Fergus Ewing announced yesterday.

The campaign raises awareness of the Debt Arrangement Scheme (DAS), an initiative that enables people to pay back debts over any reasonable length of time, based on the amount owed and their income and outgoings.

Administered by government agency Accountant in Bankruptcy (AiB), it also freezes interest, fees and charges to prevent debts mounting up. It stops creditors using debt enforcement action, safeguarding people’s homes so long as they keep up mortgage repayments.

The campaign will help people take the first step in solving their money worries by directing them to information on how to find their nearest approved money adviser online at www.helpoutofthehole.org, which goes live today.

Mr Ewing said: “The Scottish Government continues to take action, where it can, to address these problems and introduce measures to help those people in Scotland who are struggling under the burden of debt.

“The Debt Arrangement Scheme is the only government-backed scheme to help people pay back their debts in a dignified way, protecting them from the threat of action by their creditors.

“Recent changes to the Scheme have allowed for earlier freezing of interest, fees and charges helping to prevent debts increasing further. Our aim with this campaign is to raise awareness of DAS which helps people faced with the difficulties of debt to take control of their finances and get help out of the hole.”