Living on the Never Never

Most of us live with debt. It's part of everyday life.

But more and more people are being pushed over the edge.

The thing I'm going without at the moment is food.

It is hand to mouth and most days, nothing is getting to my mouth.

The Citizens Advice Bureau in a south-east Wales debt black spot

can see up to 20 clients a day,

with 20 different reasons for being in the red.

-It could be losing a job because of sickness...

-I was a social worker.

My job ended due to long-term ill health.

Certain things slowly went and you live day by day.

..a sudden death in the family...

My mother's funeral, I basically had to scrimp and save and borrow.

I still owe about £600.

..a hero back from war struggling to adjust.

He did try to work, but he found it very difficult coming out into civvy street.

He's got the debtors phoning in. Then you've got your home bills.

You can't get rid of them. Then he tried to take an overdose.

During the winter of 2014, we followed three people

trapped in debt through circumstances beyond their control.

As you see, if you look in the fridge, my fridge is pretty bare at the moment.

This fall from grace could happen to anyone.

In the past decade alone, household debt has almost doubled

and the Citizens Advice Bureau often has to pick up the pieces

when things go wrong.

People have used the term "the perfect storm"

and I think they're probably right.

-Shitting myself now.

-You may even have to borrow money to go bankrupt.

It is ironic that you have to find £525 in order to go bankrupt.

So is there ever an escape from living on the never never?

Mid-winter, Blaenau Gwent,

and Catherine Black has a consultation with a debt adviser.

Until she lost a well-paid job as a social worker,

Cath was used to helping others.

Today, with over £150,000 of mortgage and home improvement loans

weighing her down, she receives advice that would surprise many.

She can escape her debts through bankruptcy, but it'll cost.

-You could go bankrupt, yourself.

-Haven't got the money.

-You haven't got the 700?

-No.

Bankruptcy is £525 and then there's court fees of £175.

But the 175, because you're on benefits, may be waived.

OK.

You could go for bankruptcy and that would deal with all of your debts

and the property and everything all in one.

Cath's tried every other option with her debts.

Now she has to find over £500 to go bankrupt.

But life hasn't always been such a struggle.

I was a social worker.

Problems with my job started over two-and-a-half years ago.

I eventually became ill with stress.

By September last year, my job had ended due to long-term ill health.

So my income went from £32,000 a year to £940 a month.

A drop in income of almost two-thirds has pushed Cath to

her financial limits.

I coped when I was a student. I hope I can cope now.

But knowing until next Monday that I haven't got anything for gas,

electric, food...is scary.

-I got bread rolls.

-That's all you ever say, Mam!

-I've got bread rolls.

-Is that literally all we have?

-Scrambled egg and bread rolls.

-Yeah.

There's certain things slowly went.

Insurance for the boiler, personal insurance,

the food became more processed, and you live day by day.

As well as mortgage and loan debts,

Cath is also behind with her everyday bills

and has been forced onto a pre-payment electricity meter.

And each time she puts money in, costs are deducted for arrears

and the cost for the meter itself.

I've got to put £16 in and that will put me on zero.

And then, whatever I put in after that will be my electricity.

The Citizens Advice Bureau has contacted Cath's creditors to

negotiate short-term lower payments,

but that hasn't stopped the stressful phone calls.

I'm responding to a letter from you guys to ring you

because my account's in arrears.

OK, thanks, Abbey.

Cheers, bye.

Shitting myself now.

Cath has also been encouraged to consider any other areas

where spending could be cut back.

This would include her son's weekly drama club,

but it's a step too far for Cath.

He's been with the Young Stars now for five years.

He absolutely loves it.

It's helped him maintain his confidence,

it's helped develop his personality.

It's £16 a month, but because I'm...minus over £100 per

month just for the basic outgoings, it isn't available, really.

But we cut down on the food and the gas and the electric,

the stuff we can do.

Even tonight, Cath has had to rush out for some cash to pay

the drama club arrears.

After I dropped Ben off, I popped out to a cashpoint,

so I could get the money for him to stay tonight.

They told me how much I owed, so I whipped it out.

I wouldn't let this activity go for Ben.

My circumstances are not his problem.

And he needs this support that's here,

and the friendships and the activities.

With little room for cutting back and creditors still calling,

the next few weeks will be crucial for Cath,

as she tries to find the money to go bankrupt.

12 miles south, on the outskirts of Blackwood,

another client of the CAB is trying to hold things together.

A few years ago, Helen Cotterill was a happily married army wife,

but today, she's home alone with daughter Arianwen

and ignoring calls from creditors.

He's come to see why you're crying. Hm?

Following several tours of Iraq and Afghanistan, her husband Richard

left the army and has struggled to adapt to life back on civvy street.

He did try to work,

but he found it very difficult coming out into civvy street, couldn't

get a job, he started having these episodes where his rages

and his mood changes and everything like that,

and then what happened was he tried to take an overdose.

He ended up in hospital.

That's when he then got put into... with the Vets Association.

They then diagnosed post-traumatic stress disorder.

They take it back to 2007, when he did Iraq tour.

That was a bad tour. He lost quite a few friends

and he nearly lost his own life on a couple of occasions.

After several tours of duty,

husband Richard found some work in the security industry,

but struggling with the emotional traumas of war,

managing his finances became a problem.

The family's debts have grown to around £17,000.

Over the years, my husband has, where he's been ill

and he hasn't really addressed his illness,

he's basically accumulated debt where he's buried his head in the sand

-and he's not been able to deal with it.

-Daddy.

How's it going up there today?

-'Not very good.'

-Not very good?

-'I've had enough.'

-You've had enough?

Richard is now away on a six-week therapy course to

treat his post-traumatic stress disorder, and he's finding it hard.

It's not going to be easy, love.

It will be difficult, at times.

You will get bad days, as well as good days, OK?

Part of the PTSD is they feel guilty that they shouldn't be here,

that their colleagues have died,

and sometimes when they're in debt or when they've got

themselves into a pickle, they feel they've let their family down.

And it just made him worse, made his illness worse.

Then it put the pressure on me and my daughter.

-Ooh!

-Daddy's made a cake.

-Yeah!

-He made cakes when he was up there, where Daddy is.

Helen has had to reduce her part-time hours in her job to

care for her husband, and a delay in his sickness benefits claim

left them with little money for essentials.

The only solution seemed to be small

short-term, high-interest payday loans.

I needed to do those, in order to keep us afloat,

but what was happening was the one month I did it, I took the

payday loans out, every month then, you're paying the payday loans back.

Then you're struggling to live again,

so you're having to take the payday loans out again.

You can't get rid of them.

Helen has come to meet debt adviser Nicola at the CAB in Bargoed.

Once Helen's essential costs are paid,

there's not enough money for her creditors.

Nicola plans to make token repayment offers of as little as a pound

a month to the payday lenders and other non-priority creditors.

I'll revise all this, now then. And...yeah.

We can get a letter out to them.

If these token offers are accepted, a big pressure on husband

Richard will be lifted when he returns home in a few weeks' time.

But it's a waiting game for Helen,

as payday lenders are not always quick to respond.

On the outskirts of Caerphilly, Ricky Ryan is another debt

client, waiting for his appointment. Over a decade ago,

he gave up his job as a plasterer to care for his mother full-time.

Although emotionally demanding, he was still just financially secure.

Ten years ago, my mother lost the use of her legs,

so she couldn't walk.

And then, because of the lack of walking, her legs wasted away.

And then she basically laid in a hospital bed here in the room,

right here, and I had to basically do the washing, the cooking, the

cleaning, and I would have breathed for her, if could,

because she really did look after me really well.

It come to an end because she had a heart attack and died.

That was 18 months ago. My head went. I didn't...

I was depressed and I couldn't see any way out of the situation

I was in. My head was in the trenches, really.

God, just make sure you look after her.

Ricky's troubles started when facing the costs of his mother's funeral

and burial plot at the same time that he lost his carer's allowance.

I had to pay for my mother to have a grave.

I thought that was really important. I basically had to scrimp and save

and borrow over the last year to pay some of that in.

I still owe Caerphilly Funeral Services about £600.

After his mother's death, Ricky lost his income as a carer

and some of his costs also went up dramatically.

A change in status from carer to unemployed caused his car

insurance to more than double.

I contacted the Automobile Association,

which I was getting my car insurance from.

They changed my policy then from being on £500 a year

to £1,000 plus a year. I cancelled my policy with them.

Then they told me I have to pay £288 for the cancellation fee.

And then, without asking, took it out of my bank account.

A few hundred pounds pushed Ricky into a £50 overdraft he's

since struggled to clear.

The regular overdraft fees eat into his £72-a-week job-seekers'

allowance. He can't afford to put his car on the road

and he's also struggling to feed himself properly.

I really have been running a very tight ship for the last eight

months now, really, trying to get out of this overdraft situation.

I buy bread, beans and potatoes, and that pretty much gets me through each

day of the week, and there's a couple of days I don't really eat very well.

-How are you, all right?

-Yeah, good.

I went down to look at my account this morning

and I was heartbroken to see all that was left was £9.37,

so I'm now going to be £11 overdrawn again.

As you can see, if you look in the fridge,

my fridge is pretty bare at the moment.

At the moment, it is hand to mouth, and most days,

nothing is getting to my mouth.

Today, Ricky's come to meet Angela at the Bargoed Bureau Office

to see if anything can be done about his debt of over £1,000.

-So, you have a very large shortfall.

-Yeah.

-£258, you're short of.

Obviously, a month.

The main solution would be to find some way of increasing

his income, but Ricky's not ready for Angela's first suggestion.

What about getting a lodger?

I could think about that, yeah, but I don't really want a lodger, to tell you the truth.

No, I know, but even if you did it short-term, it would give you money towards living costs.

I don't want a stranger living in my house.

Or a friend living in my house. I've had a lodger before and it's no fun. Have you ever had a lodger?

-I've had four kids, but it's not the same, I know.

-It's not the same, no.

I've had a lodger and believe you me, they do take the piss, like.

'If he can improve his income,

'then he should be able to afford his commitments going forward.'

He did ask me for some advice with regards to becoming a self-employed

plasterer and I printed off some information for some ideas of places

he could go for funding and advice to set himself up as self-employed.

Ricky's decision is to return to his old trade as a plasterer.

And he's planning on going self-employed. But this brings him

back to his old problem of getting his car back on the road.

Over 100,000 debt problems were dealt with

by the Citizens Advice Bureau in Wales in the past year.

But as household debts go up,

the Bureau's funding is coming under increased pressure.

There are Bureau that have lost significant

levels of funding in Wales.

There are Bureau that have been forced to close or very

nearly close.

At a time when the demand for advice is going through the roof.

People have used the term "the perfect storm"

and I think they're probably right.

We're going to see a lot more coming in the next few years.

It is very, very worrying.

The problems that people are bringing to us

are getting more complex. The solutions are not so easy to find.

We don't have a magic bullet.

We can't magically change their situation.

What we try to do, what the purpose of it is, is to try

and put them back in control of their lives.

Two weeks later and Cath Black is trying to regain

control of her life by hitting the phone.

Although it could mean eventually losing her home,

Cath wants to go bankrupt to clear over £150,000 worth of debt.

I've been to the Citizens Advice Bureau

and I've had a full financial statement done with them.

And one of the decisions from that was to look at bankruptcy.

Cath has to find more than £500 to pay for bankruptcy and she's phoning

her old trade union and other charities to ask for the money.

It is ironic that you have to find £525

when you're over £152,000 in debt,

in order to go bankrupt.

Yeah.

Despite the frustrations,

Cath's been getting to grips with the cost of feeding the family.

With fresh veg proving expensive, she's decided to grow her own.

This is the allotments for the ward of Beaufort.

I put my name down a year ago and had a phone call to say -

did I still want one?

I said, "Yes, please." Came out and had a look.

Found the £5.25 for a whole 12 months. Yes!

And came up here for the first time on Saturday

and planted my early potatoes.

Cos potatoes are so expensive now, I'm going

to do a whole square of potatoes.

When I was a teenager, fruit and veg was so cheap,

my parents stopped gardening.

But now, with prices as they are, I think it's quite essential

and it's nice now to get back into it as well.

Since losing her job due to ill health,

Cath has been receiving sickness benefits.

With the recent changes to the benefit system, she's had to

face a health review, which has stated she's now fit to work.

I was told on the phone yesterday I scored nil out of the 15

points necessary in order to be eligible for sickness benefit.

From their point of view, I'm available for work.

And in terms of mental ill health and anxiety,

the style of the questionnaire just surprised me.

To receive job-seekers' allowance,

Cath has to prove she's looking for work.

Today, she has her first appointment at the job centre,

but she's not sure she's mentally prepared to return to the workplace.

I think I cried all the way through.

Quietly.

The woman was brilliant. She was lovely. But I just hope I can do it.

I really hope I can do it.

I don't know.

I don't know.

I'm all over the place.

For Cath, the future's uncertain

and there's still the need to find funding to go bankrupt.

The next few weeks could be crucial.

Back on the outskirts of Blackwood, Helen is still coping on her own.

She's decided to take on the burden of the family's finances to

ease the pressure on her husband,

currently being treated for post-traumatic stress disorder.

He hasn't got the worry of the finances or anything like that

because I deal with that. Things are getting sorted.

I'm still a little bit concerned about the payday loans,

but I don't tell him about them.

I keep them away from him at the moment.

The latest news from Richard is that he'll need further treatment

and will remain away from the family home.

Where we thought the six weeks would do the trick, it's not.

It's going to actually take a bit longer cos he's actually a bit worse than what they thought.

Going to have to go back for more treatment.

Helen's waiting to hear

if the token £1 offers to the payday loan companies have been accepted.

She's still receiving calls and letters asking for money.

I've got to be honest, I haven't answered the calls

because I'm too scared to. That's why...

When you do answer the call, they don't listen to reason. They just...

Their attitude is, they just won't.

As often in these cases, some creditors are not quick to

respond and Helen's waiting game continues.

In Caerphilly, Ricky's under pressure to clear his water arrears.

But with an empty bank account, repayments have to wait.

No, sorry. I can't give you any payment today over the phone.

It's going to be about four weeks' time, to be honest.

The main solution to Ricky's debts is to try and get back to work.

He's keeping his plastering skills well practised at home

and he's ready to take the plunge by going into business.

What I'm doing today is what I'm going to be doing in my future

business, which is basically making good on jobs which aren't finished

properly, or are just old and need to be maintained and brought up to spec.

Make it a nice finish, so that the people can then paint it

and it can blend into their new decoration.

Going self-employed as a plasterer would mean putting his car

back on the road - a move that could force Ricky further into debt.

It's so scary, I can't put it into words.

In fact, it's like a cloud hanging over my head, a dark cloud

in an otherwise blue sky, because going into another situation where

I might even incur more debt and then become bankrupt

and then have to sell my house.

Hopefully it'll pan out.

Today, Ricky is pounding the streets near his home to post

business cards through letter boxes.

But he knows that he'll have to up his marketing

and go further afield if he's to have any hope of success.

The range of problems faced by Ricky, Helen

and Catherine are seen all too often at the Citizens Advice Bureau.

Many, like Ricky,

find it difficult to pay for small debts with their benefits.

And the solutions are limited.

There isn't enough money to go round.

There isn't enough money to make all those essential payments.

And if they're not entitled to any further benefits,

for whatever reason, really there isn't a lot that we can do.

Like Helen, more and more are turning to payday loans to

cover financial shortfalls.

Two years ago,

very few of our clients had even heard of a payday loan.

Nowadays, we deal routinely with clients who have several

payday loans and are juggling payments between them.

And like Cath,

an increasing number of professionals are asking for help.

Our client group is changing

and we're seeing a lot more people who are now working.

But again, simply can't afford to make ends meet.

Circumstances could change, their hours have been reduced.

That can all have a knock-on effect.

Often, a change of circumstances turns lives upside down,

bringing them to the doors of the CAB.

It's spring 2014 and after a long winter for our three

families in debt, does a new season bring new hope?

On the outskirts of Blackwood, Helen Cotterill's reunited with husband Richard,

who is back from his treatment for post-traumatic stress disorder.

Helen's finally got some good news regarding their creditors.

We've agreed those minimal payments with the companies.

They're quite happy that we're paying that because at least we're paying something.

We're happy because that stress and strain is taken off our backs, off our shoulders now.

And we're able to now pay our rent,

we're not getting ourselves into hot water on that side of things.

With many of their debts on hold for the time being, husband

Richard can concentrate on getting better and rebuilding his life.

It would help a lot for me to get the stress off my shoulders.

I was thinking about it constantly, 24 hours, 7 days a week.

Pushing myself deeper into the ground and ignoring the debts,

which was causing more problems and more stress for me.

And I couldn't cope with it.

He has a lot to thank the Citizens Advice Bureau for.

If it wasn't for that organisation, I'd probably be...

Wouldn't be here now. I've come a long way and I can't thank them enough.

On the outskirts of Caerphilly,

Ricky Ryan has taken a risky decision.

I'd like to tax my car, please. For six months.

'The money for the car tax I had to find by missing a few payments

'on Welsh Water,

'but I'm going to have to make that back up with them now.'

£145.75.

I'll pay cash then, please.

-Yeah.

-Lovely.

'In the last four months, the car's been at the side of the house,

'not being able to get to and from work or make any

'kind of journeys back and fore with tools and materials.

'Then the thoughts of starting the business, I couldn't do it.'

So, that's your logbook back there.

-Your receipt. And your disc.

-Thank you.

-I'm so busy with the change here.

-That's lovely. Thank you very much.

'Making the move from not doing anything to doing something is

'always going to be tricky. I'm just relying on luck.'

Ricky now has to find paid work as a self-employed

plasterer as soon as possible

or he'll be plunged deeper into debt.

But having a taxed car means that Ricky can go further afield

to market his business, posting pamphlets throughout the area.

I've had at least three possible job leads since I've been out this

morning, speaking to people, and it's great to be back in the game.

A week later and Ricky's marketing push has turned into a request

for a quote, but will he be able to price the job competitively?

I think you probably will have to take a section of this out, but I think I probably could patch it.

It won't be perfect because it's artex.

But I could match it in as good as I can to the pattern.

I could do this for you, with the labour and the materials

and the VAT, for about £150.

Does that sound OK? That's for the two, yeah.

That sounds all right.

If you give me a call and let me know and we'll take on from there.

-Yeah.

-All right then. Thanks, Mr Griffiths.

-Cheers, thanks.

'I'm still confident it's going to work out,

'so now I'm going to spread word further afield.

'Fingers crossed that everything will work out.

'I'm going to put a lot of work and effort into marketing myself.

'If you don't succeed at the first attempt, keep trying,

'try again until you do succeed, and I'm going to use that approach.'

Beaufort, April 1st, and Cath's had an unexpected phone call that

lightens the mood immediately.

Hiya, Angie. All right?

A charity has agreed to fund Cath's bankruptcy application

and all she has to do after filling the forms is pick up

a cheque from the adviser Angela at the Citizens Advice Bureau.

Oh, fantastic!

-We've had the cheque.

-Yeah.

OK, and they've made it payable to Her Majesty's Courts

and Tribunal Service. That pays your bankruptcy fee. That's £525.

There's a court fee then due of £175.

-Because you're on benefits, you're exempt.

-Right.

-OK, so I've filled out the application form for you.

-Thank you.

So all you need to do when you take it to the court is sign it.

'It's a real sense of satisfaction.

'I'm very lucky with Catherine that because she's got the qualifications

'that she's got, there are certain charities that will help with that.

'There are many clients who we find it very difficult to get funding.'

They're encouraged to ask family and friends to help.

But finding the money is impossible.

Great. Thank you very much.

-Couldn't have done it without you.

-You got there.

-Yes.

Two days later and Cath's in Blackwood for her court appointment.

She has to submit her bankruptcy forms, hand over the cheque,

and wait for confirmation that

over £150,000 worth of debt has been taken care of.

They didn't call it bankruptcy. They called it insolvency.

And it was all over and done with within half hour.

What I've got is one piece of paper to say I am now bankrupt.

And it basically means that's it now. All my debts are written off.

Um...

And anything else that I've got now, like the property, the car,

or sorting the bank account,

will all be dealt with with the official receiver.

And once my circumstances begin to change, following this,

then I'll be able to fully appreciate that today is

the first day of the rest of my life.

With Cath's bankruptcy, Ricky's move into business,

and Helen's new payment plan,

three people are closer to lifting their burden of debt,

but every day, another 20 turn up at the same advice bureau,

20 different stories shared,

and 20 new attempts to escape the burden of living on the never never.