Facing the Facts: Understanding the Stigma and Struggles of Debt in the UK

New research uncovers the emotional and financial toll of debt, revealing people living with problem debt, grappling with stigma, and a desire for compassionate solutions.

By Richard Haymes, Associate Director, Clients and External Relationships at Aryza

Debt affects millions of people across the UK, Aryza’s new research reveals just how deeply it impacts not just finances, but emotions, relationships, and wellbeing. The research, which surveyed 250 UK adults who had experienced debt collection or entered a debt solution or insolvency arrangement in the past year, paints a stark picture of life in debt and the barriers people face in getting help.

The Stigma Around Debt Is Still Strong

A staggering 91% of respondents believe there is stigma associated with debt. The perception is stronger among women (62%) than men (38%), and most pronounced among 18–24-year-olds, suggesting younger adults are particularly sensitive to societal judgment.

Half of all participants felt there is definitely stigma around debt, while 41% said they felt it to some extent—demonstrating how widespread and ingrained the issue is.

Monthly Bills, Rent and Mortgages: The Need for Holistic Debt Solutions

When asked about their ability to keep up with monthly bills over the past year, only 21% of respondents said they were always able to pay on time. A further 37% said they managed to pay most of the time. However, a significant 44% admitted they could only meet their financial obligations sometimes, rarely, or never. The age groups most affected were those aged 35–44 and 55+, who were the most likely to report regularly struggling to meet their monthly obligations.

Loan repayments, council tax, and credit card bills emerged as the most missed payments, with council tax particularly challenging for every age group above 24. Meanwhile, the ability to contribute to pensions dropped sharply after age 34, highlighting long-term implications for retirement security.

Utility bills also revealed a clear generational divide, with young adults (18 to 24) being the most likely to struggle with paying gas and electricity bills. In contrast, older age groups, particularly those aged 45 to 54-year-olds and 55+, found it increasingly difficult to manage their water bills.

Affordability assessments play a crucial role in ensuring that repayment plans are sustainable and realistic, taking into account each individual’s ongoing living costs and essential bills. This helps create solutions that people can commit to with confidence and consistency.

Rent, mortgages, and vehicle maintenance were other common areas where financial strain was evident. Among 25–34-year-olds, 31% were unable to pay rent or mortgage, and nearly half (48%) couldn’t meet loan repayments, the highest across all age brackets. Vehicle maintenance was another casualty of tight budgets, especially for younger consumers.

FCA-regulated debt advice and formal solutions such as Debt Management Plans (DMPs) or Individual Voluntary Arrangements (IVAs) are essential for individuals managing multiple problem debts. These structured approaches provide long-term support by balancing debt repayments with sustainable monthly costs, including rent, energy, food, and household maintenance to ensure financial stability over time.

This research makes it clear that people are doing the right thing—engaging creditors and seeking help—but they don’t always receive the support they need. That’s why holistic debt solutions are vital. By aligning affordability assessments with regulated advice and long-term repayment options, organisations can ensure that when customers ask for help, they’re met with a pathway to recovery, not a dead end.

Cutting Back: From Essentials to Emotional Wellbeing

Debt doesn’t just affect finances—it alters daily life. The most skipped or stopped expenses were:

Clothing (48%)

Social interactions (17%)

Meals, healthcare, and heating were also often sacrificed.

Older people (55+) reported the highest rates of cutting back on social activities (75%), while 35–44-year-olds were most likely to forgo healthcare (30%), and 25–34s were more likely to skip vehicle upkeep.

Gender also played a role as women were more likely than men to forgo social interaction, meals, and heating, reflecting a gendered dimension to the emotional toll of debt.

The impact of debt on individuals is complex, touching every aspect of daily life. The fact that 75% of those over 55 are cutting back on social activities highlights just how isolating debt can become. Previous research has linked debt to increased social isolation, and our findings reinforce this, particularly among older adults. This highlights the broader, often hidden, social consequences of financial difficulty, particularly for individuals already vulnerable to loneliness.

Do People Reach Out When Help is Needed?

Encouragingly, 86% of respondents said they reached out to their creditors once they realised they were struggling. Of these:

54% managed to create a solution

22% couldn’t get a response

11% were unsuccessful in creating a solution

So, what prompted people to reach out to their creditors? For many, it was the fear that the situation would escalate or lead to legal consequences. Others, especially those aged 55 and over, said they reached out because it felt like the right thing to do. Some were motivated by encouragement from creditor communications, while others were influenced by advice from friends, family members, or support organisations.

However, for the respondents chose not to reach out to their creditors at all, their reasons were revealing. Some believed the creditor wouldn’t be willing to help, others felt too embarrassed to make contact (39% of women vs. 10% of men), and many feared making the situation worse, such as having their accounts blocked or facing further consequences.

Despite the stigma surrounding debt, it’s striking that the majority of those surveyed have reached out to their creditors for help. For creditors, this represents an opportunity to provide support and guide customers towards the most suitable solutions. While many received assistance, the complexity of managing multiple debts across various sectors meant that many did not receive a response or were unable to reach a resolution.

This underlines the fragmented nature of problem debt, which encompasses everything from credit cards and loans to utility arrears and government debt, each with its own distinct approach and regulations. It highlights the importance of creditors utilising all available tools to support their customers. By working collaboratively with debt advice providers and supporting access to holistic debt solutions, such as IVAs, creditors can play a critical role in helping customers navigate complex debt situations and regain control of their finances.

Debt and Vulnerability

Debt doesn’t just impact finances; it affects emotional wellbeing too. An overwhelming 87% of respondents said being in debt made them feel vulnerable. In response, many sought help from informal or external sources. Over half (52%) turned to friends or family for support. Others reached out to regulated debt advice services, with 31% contacting Citizens Advice and 28% reaching out to either their creditor or the StepChange Debt Charity. Additionally, 20% contacted MoneyHelper, while 19% searched online for guidance and support.

To address this vulnerability, creditors can utilise advanced AI, data, and streamlined processes to identify customers who may be at risk and tailor support to their individual needs, thereby promoting more effective debt resolutions. Where more specialised assistance is required, this approach can also facilitate timely referrals to expert support services, such as Macmillan, ensuring customers receive the appropriate support at the right time.

What Do People Know About Debt Solutions?

Despite the prevalence of debt, knowledge of available solutions remains limited:

20% knew about DMPs

17% were aware of bankruptcy and debt settlement plans

15% recognised IVAs

Awareness varied by age, with younger people recognising bankruptcy, middle-aged adults recognising IVAs, and 25–34 -year-olds more aware of Debt Relief Orders.

Helping customers feel confident enough to engage with the process and seek support is essential for achieving better outcomes. When creditors adopt a consistent and empathetic approach in how they communicate and market to customers, it helps reduce stigma, reinforces the message that support is available, and ultimately increases the likelihood that customers will stay in touch and, where possible, make affordable repayments. Promoting access to regulated debt advice and solutions plays an equally important role. When these approaches are combined, they create a robust framework for early intervention and long-term financial recovery.

Supporting Customers with Problem Debt Has Come a Long Way, But More Must Be Done

This research underscores that many individuals are receiving the assistance they require; however, there remains room for improvement. By leveraging data-driven affordability assessments and linked-up referral pathways to regulated debt advice and long-term solutions, creditors can take a proactive role in supporting vulnerable customers and breaking the cycle of problem debt.

At Aryza, we help organisations across collections, recoveries, debt advice, and insolvency make this happen, through innovative tools that streamline complex processes for Financial Services and individuals.

By delivering advanced decisioning, intelligent automation, and seamless integration with support services and debt advice providers, Aryza empowers organisations to improve efficiency, compliance, and customer outcomes.

If your organisation is looking to better identify, engage, and support customers living with debt, speak to us today about how Aryza can help.