Hopkins v Hopkins... the debt debate

I watched the recent Channel 5 Debt Debate, shouting at the TV like so many others. Is the country full of irresponsible borrowers who are too ‘stupid’ to know what they’re doing and too ‘irresponsible’ to care? Katie Hopkins thinks so, but Kath Hopkins knows differently.

Debt is not just about reckless borrowing for PS4s and Christmas presents. It’s about life events that cause a drop in income; about struggling to pay rent, council tax, utility bills and food; about not being able to save because you have so little to live on and about lack of availability of advice services at an early enough stage to help prevent debt.


Here are the details of my last five clients... Are they the people portrayed on the debate?

Client 1 – Ill health meant this person could not work and had to claim benefits. He fell into mortgage arrears. His mortgage company said they would only accept interest only payments for six months, so now he has to pay £375 per month to cover the repayment part of his mortgage. He receives £303pm Employment Support Allowance. He hopes to be able to return to work but cannot afford to pay priorities at present from the £5.77 a week he has left.

Client 2 – Her husband suffered a stroke. He had been self-employed for many years, but is now unable to work. She has had to cease working in order to be his full time carer. They have mortgage and utility debt. They do also have non-priority debt, but have taken responsibility for it and have a payment plan via Step Change, but are still struggling to pay for essentials.

Client 3 - Worked solidly since leaving school until a mental health condition meant he was unable to continue working at age 47. He is managing to pay all of his priority bills but has catalogue debt and a very high oil bill as he is not on the mains gas supply. He tried to get advice, but had only heard of the Citizens Advice Bureau and, as his local office had closed, he thought there was nowhere else to  go.

Client 4 – Her husband was made redundant then, shortly after, found he had a critical illness. She needs to care for him full time so is unable to work. They have utility arrears only and are struggling to pay bills.

Client 5 – Separated from her husband, she is unable to work due to a disability. She applied for PIP in September, but is still waiting for a decision. Meanwhile she is surviving on £70 a week ESA. She only owes the council for dinner money as no-one told her she was eligible for free school meals.

Yes, Katie Hopkins, in an ideal world we would all work in well paid jobs. We would all save up for non-essential purchases. We would all insure against ill health and redundancy. However, I live in the real world and this just isn’t possible for most people who live here too. Wages are stretched too thin to be able to think about saving. Sickness and redundancy insurance are non-priorities and not available to the self employed.

Not all debt is due to reckless spending and irresponsible lending, it’s also caused by not having enough money to be able to manage day to day. Are people who work and borrow from the bank to buy a car so they can travel to work any better than the person who buys a sofa from Brighthouse? No, they are just the same. They are just luckier to have more options available to them.

Saving is even harder for those on benefits. How can you save when you have £70 per week to live on and are not able to find work or are not in a position to look for work due to ill health or caring responsibilities? How can you save when out of your £70 a week you have to pay £23 'bedroom tax', £10 gas, £10 electric, £10 water, £3.50 TV licence and £5 child support, leaving £8.50 for food, travel, phone and clothes?

What were your thoughts on the Debt Debate? Do you agree with Katie Hopkins or with Kath Hopkins?


Kath Hopkins
Money Advisor 

A day in the life of Moneyline Cymru

I’m afraid I am going to start with the C word. It is October, Christmas is fast approaching and Moneyline customers are getting ready for it. Quarterly savings account statements have just been sent out, so the Moneyline office is seeing a stream of customers coming in to withdraw their savings with most looking forward to starting their Christmas shopping.

People are also coming in to ask about how to get a loan. A loan is only approved after checking a customer’s identification and income & expenditure to see if a loan is affordable. It then takes 3-4 days for the money to reach their bank account. However, Moneyline doesn’t just offer loans and savings. When looking at an application, the loan officers also assess whether a Money Adviser could help. For example, they can see if benefits are not being paid that a customer may be entitled to, if they would be eligible for utility discount schemes or if they are making payments to creditors and have debts. For these and many other reasons, customers are referred to the in house Your Benefits Are Changing Money Adviser for free and independent money advice. This helps customers in so many ways.

One customer rang today to say thank you because a loan officer  spotted that she would be eligible for a discount on her water bill and that she wasn’t receiving Tax Credits. After talking to the Money Adviser it was confirmed that she was eligible and she was helped to apply.  She is now £60 per week better off by claiming Tax Credits, is saving on her water bills through Welsh Water Assist and will receive £135 via the Warm Home Discount in the New Year. This has made a massive difference to her and, through coming in for a loan, she has actually found herself financially better off.

Moneyline Cwmbran has been nominated for a ‘Torfaen’s Most Recommended’ award and customers are completing voting forms with lovely comments such as ‘friendly staff'; ‘non judgemental'; ‘love that you can get money advice as well’; ‘ you really help people’.

Our office is in the middle of the town centre, so customers can easily pop in to ask questions or just say hello, and this certainly adds to the good relationships we have with customers. Today one customer popped in to introduce us to her new baby – cue oohing and ahhing all round in an office of mums.

As the Money Adviser, my day today has included appointments for debt advice, a telephone enquiry for a benefit check, processing applications for Welsh Water Assist and Customer Assistance Fund, an application for Discretionary Housing Payment  for someone affected by the 'bedroom tax', talking to customers about Universal Credit and Personal Independence Payment, and searching for grants (it’s amazing how excited I got at seeing ‘army pension’ on an income sheet at the thought of the grant options I could look into for this particular client). And, on a personal level, thinking about how unprepared I am for the C word compared to our customers.

Your Benefits Are Changing is a Community Housing Cymru project and is funded by the Big Lottery.

Kath Hopkins

Money Adviser