StepChange Helps Over 650,000 People A Year. Find Out How. (2024)

FAQs

How many people do StepChange help? ›

StepChange supports half a million people in its 30th year

With the cost-of-living crisis both worsening debt problems for some and sweeping new cohorts of people into financial difficulty, StepChange saw changes in a typical client's profile last year, with people from higher income brackets seeking advice.

We help people worried about debt by giving them free advice, and offering debt solutions that can help them write off some, or all of what they owe. Or they could pay it back over a longer period, for example, in a debt management plan. Unlike lots of charities, we're not funded by donations from the public.

Your proof of income needs to include your full name, and can be one of the following: Your most recent payslip (dated within the last three months) A recent bank statement that shows your income (dated within the last three months).

"Would recommend!! Amazing helped me immensely, especially with the cost of living going up and the financial pressure it put on myself and my family. I am budgeting and able to pay my debts less stressed and able to sleep better at night thank you."

But the maximum fee you will ever pay is never more than £50 (depending on how much money you are paying into your plan). But because the maximum fee for this disposable income amount is £35, then this is the actual monthly fee that would come from your payment and not £41.

New research from the Financial Conduct Authority (FCA) has found that while many are struggling to meet financial commitments, the picture has improved over the last year. The regulator found 7.4m people were struggling to pay bills and credit repayments in January 2024, down from 10.9m in January 2023.

Evidence of income

This can include evidence of current employment or self-employment, recent pay statements, a letter from the employer on business letterhead – showing dates of employment, wages paid, and type of work performed – or other financial data.

Proof of income is a document or set of documents that someone, usually a lender or landlord, requests to verify your income and determine your qualifications for a mortgage, rental agreement or other loan or service. A lender or landlord may ask for some form of a proof of income letter.

Collection-proof refers to a person who does not have income or assets that can be legally seized to pay back a debt. Certain types of income are collection-proof by nature, including a variety of federal benefits, such as Social Security and Social Security Disability Income.

If you've missed or struggled to make several payments, missing another payment can put your plan at risk. This may be a sign that you need a budget review, to make sure your plan is right for you and that it's sustainable.

Do StepChange charge a fee? ›

Entering a debt management plan is free to clients if it's provided by StepChange Debt Charity. Other providers may charge a percentage of the money you pay to them.

The survey shows that 8% of adults had received financial advice in the previous 12 months. This figure is inching up slowly over time; up two percentage points since 2017.

Yes – creditors are under no obligation to accept your DMP. They might do this if they don't want to accept reduced payments or feel you could afford to pay more. If they refuse to negotiate with your DMP provider, it can be worth negotiating with them yourself. Outline what you can afford to pay each month and why.

It can take a few weeks to set up a DMP. It depends on how quickly you can provide the information needed.