Displaying items by tag: CAP

Britain's personal debt mountain is growing. Households borrowed an extra £20bn on credit cards and have £45bn more personal debt than they did a decade ago – an increase of 25%. In 2019, total unsecured debt (credit cards, personal loans and overdrafts) was £225bn. A decade ago Britain was near the peak of cheap credit-fuelled debt binges. Many hoped that personal debt would be reined in. This has not happened. Borrowing increased as wages failed to keep pace with inflation. These statistics do not include secured borrowing such as mortgage debt or student loans, which increases the figure substantially. Experts believe the personal debt surge is due to credit becoming cheaper towards the end of the decade. StepChange, a debt charity, recently estimated that across Britain, over three million people fell behind on an essential household bill in the last 12 months.

In October 2018, BBC2 showed a documentary, The Debt Saviours, about the work of Christians Against Poverty (CAP), which aims to help those who have piled up debts and do not know how to cope. When CAP’s founder John Kirkby was himself in that situation back in the 1990’s, his world falling apart, a Christian couple took a real interest in him and introduced him to Jesus. His life changed dramatically. He writes: ‘This became the model of how CAP works today too: we partner qualified debt counsellors with the love of the church. It’s an equal partnership, with both sides determined to see someone become debt-free and know they are loved. Love is what the church does best, and it’s an underrated and powerful resource in the UK. All of those who go through CAP’s debt relief are given money management principles that will stay with them long after they are debt free. Contrary to popular belief, people in debt do want to pay their debts off, if they can. However, as many of them are on a very low income with little to spare, it would take them decades to achieve and insolvency can be the sensible option. This is why our head office building is called Jubilee Mill, mirroring the Old Testament’s Year of Jubilee when debts were wiped.’