Derry woman breaks free from debt with help of CAP

Derry woman Janice, a single-working-parent living with severe arthritis, was forced to leave her nursing career and eventually file for bankruptcy as her only route out of debt.

Surviving on sickness and disability benefits and with three adult sons living at home, her income wasn’t enough to cover her monthly bills and general living expenses and subsequently she began to accumulate problem debt.

“When I started getting into difficulty with finances it was not having enough income to meet bills like my mortgage," she said. 

"I just got deeper and deeper into debt. Eventually I knew I wasn’t going to get out of it and I was at risk of losing my home."

After having to give up work sooner than she had planned and from the rising pressure of debt, Janice fell into a depression. 

With letters from creditors arriving daily, she was unaware of any solution.

Janice continued: “I had worked my whole life but my arthritis prevented me from doing my job and it was so bad at the time that everything crumbled on me. 

"I thought of burying my head in the sand and thinking it would go away. It obviously didn’t go away, and the letters just kept coming."

Janice’s close friends and family were aware of her circumstances, but she refrained from talking about it openly. As a mother of six adult sons who were working, she was also afraid that they would feel an expectation to help, “I didn’t want them to feel the pressure or that they should help me with the debts.”

Janice was referred to the Foyle CAP Debt Centre by counselling staff at her local GP and this was the beginning of her accessing the advice and support she needed.

Foyle Centre Manager, Linda Leanord, met with Janice in her home to go over the paperwork outlining the debt she owed, which was sent to CAP’s head office in Bradford, England. 

Mediating with creditors on her behalf, CAP was able to freeze interest on her debts and Janice quoted her CAP reference number any time a creditor contacted her.

Describing the moment she accepted help from Linda, Janice said: “It’s hard to come to the decision that you need help, but it was one of the best things that could have happened.

"I used to question myself on how I got into this mess but with CAP, there was never any feeling of judgement.”

The sale of Janice’s house wasn’t enough to clear her debt in full and as her only solution, CAP prepared for Janice to file for bankruptcy. 

The day she handed in the paperwork to the courts in Belfast was the beginning of the end.

Janice said: “I felt hopeful when I knew that my nightmare would end. It was one of the hardest things I’ve ever had to do. 

"I’ve had a divorce and raised my children on my own, but bankruptcy was one of the hardest things to have had to do and to accept.

"I still struggle with it at times, just knowing that that’s what I had to go through in life.”

Janice’s financial circumstances have since improved, learning new ways to manage her money following the support and guidance from CAP. 

Now living in a rented house, she no longer carries the financial weight of the mortgage and has been able to set up home with the help of her sons. Describing her journey of getting out of debt she said: “I had to accept that at 55 years old I wasn’t able to work anymore, it was earlier than I had hoped but that was where I was at. 

"I’ve learned to live a simpler life and without the pressures of debt, there’s a peace that I have.”

According to a 2021 report by Christians Against Poverty, CAP clients in Northern Ireland earn the highest income compared to the rest of the UK, but also owe the highest amount of debt. 

77 percent of total debt makeup is owed to non-priority creditors - for example, credit cards, unsecured loans and overdrafts- which is more than the 67 percent owed by CAP clients across the UK as a whole.

A new poll reveals that over half -57 percent- of people within the UK who
have problem debt would not ask family or friends for help and 37 percent of those are unaware of where to get financial advice from. 

Speaking on her experiences working with clients in the Foyle area, Linda Leanord said: “I see so many people in the community not having enough income to cope with the increase in domestic bills. Having worked with CAP for the past ten years, I can see such a change in benefits and the struggles people are experiencing.

"The role has proved to be very rewarding to see people coming out of debt and having a better quality of life.”

Paul Livingstone, Partnership Manager for Christians Against Poverty Northern Ireland said: "Across the UK in 2021, 7326 appointments were booked in by our call team, 279 appointments of which were in Northern Ireland.

"We had 542 adult clients on our books here, inclusive of people who may access more than one of our services - debt advice, Job Clubs and Life Skills courses..

"Our services can make such a difference to people. People struggle with debt, trying to deal with it themselves for far too long; up to three years in about a quarter of cases. 

"While they do so, living with debt impacts on their physical and mental health, their relationships and their daily lives - as they live without basics, like food, heat or toiletries.

"We can lift the weight from them, as we take on dealing with creditors and working out budgets, bringing relief, while also providing practical and emotional support and encouragement. We stay with them right through the process. 

"We also help people, during their journey out of debt, become better equipped for life after they become debt free, so they are a bit more resilient going forward and stay out of debt."

Paul believes that the current cost of living crisis is only spiralling more people across the country into debt, "Even before this crisis we saw many people who were struggling to meet their bills," he said.

"People were paying for things like groceries on credit cards when there was no money left.

"People who were just about balancing their budget will find that much harder now. The risk is that this crisis pushes many more such people into problem debt."

Foyle centre currently sees around 24 people a year. This is similar to a number of other locations throughout Northern Ireland.

Paul continued: "Derry, like everywhere else across Northern Ireland, has people who need help who aren’t coming forward and we want to encourage them to do so. 

"We need to get the word out that it’s okay to acknowledge you need help, you’ll not be judged, just treated with compassion. We also need to make sure people know where to get help."

CAP is largely funded by over 29,000 individuals, they call them Life Changers, who pay a monthly amount to CAP. 

This allows the charity to help a large number of people. In addition, they receive donations from churches, trusts, companies and some Government funding in Great Britain.

Paul concluded: "We need poverty, given the impact it has on so many areas of peoples’ lives, to be a real priority of the Government as it affects so many parts of life."

If you have been affected by the issues discussed, get in touch with your local CAP Debt Centre please go to
https://capuk.org/i-want-help/ our-services/cap-debt-help/ free-debt-help-in-northern-
ireland