It sounds easy to say but you genuinely shouldn’t feel embarrassed by debt. For a brighter future, trust us. We have the most 5 star TrustPilot reviews than all other debt solution providers in Scotland combined.
In a 2023 Trust Deed Scotland® customer survey, 44% of our customers told us that the fear of being judged and feeling ashamed and embarrassed about their debt stopped them from doing something about their debt sooner than they did.
Based on the feedback we have received from thousands of customers, we know that problem debt can lead to a string of shame and embarrassment.
Many people in Scotland struggle to even talk about their debt problem, let alone to reach out and get help.
If you’re feeling ashamed, guilty or embarrassed about your debt you are not alone. We receive hundreds of calls every month from people just like you: people in debt, struggling to make ends meet and feeling helpless. The UK is in the midst of a debt crisis. Personal, unsecured debt has soared to unprecedented levels; the average total debt per UK household was £65,569 in February 2024.
While we would never advocate giving up all responsibility, a lot has happened economically and politically in the last decade beyond our control – from wage growth stagnation, to wage and public service cuts and restricted access to quality sources of credit.
All of this is without even touching on more personal, unforeseen, changes in circumstances like losing your job, medical problems or utility breakdowns.
Embarrassed About Debt
Though it may seem difficult, it’s important not to beat yourself up and buy into popular misconceptions about debt. It’s a common belief that people land in debt because they’re bad with money, their spending is out of control and they are living beyond their means. From our experience, this could not be further from the truth. The truth is that problem debt does not arise from one reckless purchase, nor does it happen overnight. Problem debt builds up as a result of a spiral effect:
- for any multitude of reasons, you struggle to pay essential bills;
- you borrow to fill that gap;
- much of your income is now tied up in repaying loans, and; you now have to keep borrowing to keep your head above water.
We’ve heard from thousands of people and families that have gotten stuck in this spiral over the years. Most were simply trying to make ends meet (with perhaps some bad spending habits).
Getting Informed and Predatory Lending
One of the main effects of the debt spiral is that once you are in debt it’s difficult to get out of it. This is made worse by the confusing, often overwhelming jargon terms used in the financial industry. These terms make the already daunting first steps to tackling your debt seem even more intimidating – you may find our Jargon Busting Guide helpful.
On top of this, our education system does little to prepare us for the practicalities of budgeting and financial planning. Several years ago, a study published in the Journal of Economic Psychology found that those who aren’t well-versed in finances are more likely to spend compulsively, use expensive credit, and experience difficulty following changes in income or unforeseen events.
Financial education was only made compulsory in the school curriculum in 2014, and two years after that, The Money Charity reported that over 75% of teachers considered it “somewhat or very ineffective.” – with not much evidence of change a decade later in 2024.
Further, there are businesses and entire industries built upon predatory lending. Of course, the main examples are buy now pay later lenders payday loan companies.
The UK’s financial regulators had previously taken interest in the advertising practices of payday lenders, as opposed to the high (and increasing) cost of these loans. Even more reputable lenders like banks have a lot to answer for in terms of profiting from growing consumer debt levels. Buy now, pay lenders are coming under the same level of scrutiny in recent years with campaigners focusing on increased regulation of the sector.
Given that you likely received little or no help in managing your spending and finances; and that many companies actually have a vested interest in the national debt crisis, you should reconsider shaming yourself because of a debt problem.
Taking Back Control
Apart from for the good of your mental health, the main reason why you shouldn’t feel ashamed of your debt problem is that embarrassment will not help to improve your situation. In fact, it will make it even worse.
When something leaves us anxious, embarrassed and ashamed, it’s easier to hide from and avoid that feeling, than it is to deal with it.
People are pretty good at hiding from their debt problem, no matter how severe it is.
Think of the times when you avoided looking at your bank statement for days or avoided talking about money with others because it reminded you about your situation.
Hiding debt from yourself is the best way to increase the amount that you owe. Instead of hiding, it’s important that you face up to how much you owe and come to understand how your problem arose without judging yourself.
Your debt problem does not define you as a person.
If, on top of the common issues identified above, you have made poor spending decisions in the past, this is not a reflection of your character. It is merely a bad habit which you can fix with the right information, strategy and a bit of time.
From this more self-compassionate headspace, you can address the problem and get your finances, and your life, back on track. As a starting point, you can consider our comprehensive guides on budgeting and debt consolidation.
Should your problem require more drastic measures, and debt has really gotten on top of you, we can help with a more head-on option. We specialise in debt advice for the residents of Scotland.
Embarrassed by debt no more – Non-judgemental advice is available
Take a look at our Trust Deed reviews and find thousands of stories from individuals who were also embarrassed by debt, or suffered from conditions like anxiety, stress and depression as a result. We’ve advised over 30,000 people and believe us when we say they really do come from all walks of life yet share common reasons for finding themselves in debt.
For tailored debt advice, give us a call today on 0141 221 0999 or find out if you qualify for a debt solution using our Trust Deed Wizard tool.
This could be your first step towards a brighter and stress free future.