Sharp rise in debt advice demand in 2023

As such, the charity – alongside Citizens Advice and the Money Advice Trust – are urging people to be cautious when looking online for help with problem debt, as social media and search engines can be rife with misleading advertising.  

Richard Lane, director of external affairs at StepChange Debt Charity, said: “Ads offering to ‘write off up to 90% of your debt’ or ads specifically targeting certain demographics such as ‘help for women in debt’ are common, but aren’t always what they seem.  

“They tend to be run by lead generators, who collect individual’s personal details in order to sell them onto a commercial firm for a fee. This can lead to someone being sold a debt solution that might not be appropriate for them, and may worsen their finances in the long run.” 

Acting executive director of policy and advocacy at Citizens Advice Matthew Upton added: “People seeking debt help should be able to trust the advice they get. Instead, they are being bombarded with adverts promising quick-fix solutions and huge debt write-offs. 

“The reality is that these tactics are deceptive and lure people into fee-paying debt solutions like IVAs which they so often can’t afford. 

“When you’re in debt, receiving the right advice is vital, because getting it wrong can make things much worse.” 

Alongside this, the three charities have faced issues with impersonation as lead generators seek to mimic their branding to dupe people into thinking they’re dealing with a debt advice charity. 

Jane Tully, director of external affairs and partnerships at the Money Advice Trust, said: “Too often we see examples of misleading adverts targeting people in financial difficulty, in some cases posing as free debt advice providers.

“The firms behind these often push people towards debt options that may not be suitable for their circumstances. This can make a difficult financial situation worse, so it is important to make sure you are getting debt advice from a trusted source.”