Debt Advice Centre Outgrows its Home!

Harpenden Money Advice Centre (HMAC) is a free debt advice centre set up by a group of local Christians concerned to help those caught up in increasing levels of debt, especially since the credit crunch. Richard Payne, the founder member of the group, came to speak about the work of the centre at the September meeting of Harpenden Matters, held at Wesley's on 20th September.

Before hearing about the work, we were invited to complete a quiz about levels of debt in the UK. We learnt that someone is declared bankrupt every minute, a property is repossessed every 14 minutes, the total credit card debt in July 2010 was £58.4 billion and 70% of relational breakdowns cite finances as a major factor. So the problem is huge.

The Centre, which is based in All Saints Church and is a registered charity, is staffed by volunteers who have undergone professional training. We watched a short role play of a typical interview with a new client. Those coming to the Centre for advice include people from all backgrounds, ages, ethnicity, religion and income. Some are just a few hundred pounds in debt, others many tens of thousands of pounds, but all find their situation overwhelming and impossible to manage.

The advisors begin by getting a detailed breakdown of the client's income and outgoings, such as utilities, rent, council tax, credit card debts, food bills and other regular outgoings. Sometimes, the client is entitled to benefits which are not being claimed, while in other cases, a debt management plan may be made. The centre may write to the client's creditors to arrange with them a payment plan for dealing with the debt. This can take some time, so usually the client will have several appointments with the Centre.

The result of helping people manage and eventually pay off, their debt is that it literally gives people back control over their lives, restores relationships which are often put under great strain by debt, and enables children to grow up in a healthy environment, free from fear.

Richard's personal story began at All Saints Church where he used to worship. God gave him a heart for the community of Batford and he felt called to live there. He wanted to be involved in the community but was unsure what he could offer. A book entitled 'The Church of Irresistible Influence' was formative in helping him to think through what skills and interests he had which could be used by God in the local community. Richard is an accountant by training but also has a heart for people and sees the work of the Centre as an outreach ministry not only to Batford but the whole town - indeed some clients come from towns in other counties.

The centre opened in August 2008 but for the first 5 months, no-one came! However, after a slow start, the work grew and the centre has now helped nearly 50 clients to manage their debt. Perhaps contrary to many people's belief, debt is not necessarily the result of irresponsible spending. Sometimes illness or redundancy can prevent someone from working, or a relationship breakdown can result in the wage earner moving out and assets being divided. A quarter of people in debt experience a mental illness of some sort, such as depression, or anxiety which in some cases can lead to substance abuse or even suicide.
The HMAC does not have funds to provide loans to clients, but they do work closely with another charity, the Harpenden Trust which can help with loans and small grants in certain circumstances.

Future Challenges
Because of the growing number of clients the centre is serving, the expenses of the work are growing. At first, the work was funded by Batford Community Church (BCC), but estimated costs have almost doubled over the last year to £2000 per annum, so other sources of funding are being explored. These include grants from the local council and from the Harpenden Trust. Other churches now contribute to the annual cost and it is hoped that more may be able to make a contribution.
Richard's family is growing too, which means that the admin office will no longer be able to be accommodated in his house, so new office space will soon be needed. Similarly, Richard's own finances are a concern, since he has had to relinquish leadership of BCC in order to give more time to the Centre, and this may necessitate him looking for part time paid work in order to avoid getting into debt himself! One answer to prayer is that a new member of staff will be joining the team in November, and will be able to take over some of the admin work from Richard.

Perhaps the most rewarding aspect of the work is the feedback from clients. The following are a selection of comments from a few of them:

"I no longer have to hide in the bedroom with my children when someone knocks on the door"
"I feel so relieved"
"I haven't slept so well in a long time".
"I feel like I have been given my life back."

If you would like more information, or to volunteer to help with the work of the centre, or if you would like advice about debt, contact the Centre on 07954 276281 or email harpendenmoneyadvicecentre@yahoo.co.uk