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Many people are having problems with money, especially debt. For some gay men the problems of coping with debt are worse, and the gay lifestyle encourages spending which adds to the problem. It’s a problem nobody wants to admit having, but the effect debt can have on you is devastating.
There has been very little research into the level of debt in the gay community in the UK, but there has been some.
In 1999, a survey in Brighton found that most gay couples surveyed were living on much lower than average incomes, making it harder for them to put money aside for emergencies and the future.
In 2005, the Terrence Higgins Trust found that 38% of gay men over 50 years of age needed help with debt.
Those surveys were taken in the good years before the world recession.
Gay activists and community leaders need to be aware of the issue of debt, both for their own security and so that they can help gay people who approach them for help and ideas.
What factors drive gay men into, or further into, debt?
Many gay men live on their own. Everyone has to pay rent, mortgage, council tax, service charges and utility bills but if you are on your own you have to find the whole amount, so single living is more expensive than if there was another income earner in the household to share the bills.
The cost of credit has gone up. Overdrafts, bank loans and credit cards charge more per month on the amount borrowed than they did before.
Interest rates on savings have come down. Even if you have some savings for a rainy day, they are not increasing in value at the same rate, and may be being eroded by inflation, which is currently around 4%. Pension fund values have been reduced by the recession, while lump sums being relied upon to generate extra income after retirement are producing less return.
Relationships have ended or a partner has died.
Living the lifestyle. Holidays and expensive clothes are very pleasant but they have to be paid for.
Pay or overtime has been cut. Many gay people work in lower paid job sectors such as care work and retail. You can end up in debt through no fault of your own.
Pension payment has been frozen, benefit changed or reduced.
One or more partners may have lost their job.
A major change in health. An HIV diagnosis can cause people to lose their jobs or make them unable to work due to ill health, while improved treatments have extended life expectancy. Debt comes further down the list of priorities after health, family and welfare.
Crime. Being injured or attacked for being gay, or being robbed or threatened, have devastating effects.
Family breakdown. Being thrown out of your home or excluded from your family.
Dependence on medications, alcohol, drugs.
Compulsive behaviours.
How we can help our community
Know what resources are available locally – citizens advice bureau, debt counselling, debt support groups.
Avoid arranging overly expensive functions, and assuming that the members of your group can afford the things you can
Have contacts like a financial adviser who can help
Know something about the welfare system so you can point people who might be eligible for help in the right direction
How we can help ourselves
Pay off your plastic and only have one credit card at most
Check you are paying the right amount of tax and are on the right tax code
See if you can find a friend to mentor you, so you can improve your situation
Have a financial review to gain a better understanding of where your money goes and get someone else’s ideas
Devise a plan which will steadily reduce your debt and increase your financial reserves
Go shopping with a shopping list to avoid impulsive or unnecessary purchasing
Take advantage of customer loyalty cards, price reductions of things you would buy anyway: you’ll be surprised how the savings add up
Use co-ops, credit unions, recycling clubs, health savings and friendly societies and other socially responsible non profit organisations
Find out which local shops offer reconditioned appliances such as cookers, washing machines
Ask your bank or building society if there are better accounts, better deals on borrowings, would you get more interest on an internet based account, a better quote for your insurance, etc
Check your utility bills, are there better deals, can you get a discount for having an email bill instead of a paper one, etc
Check your contents insurance – are you paying extra for additional cover you don’t actually need? What about the cost of servicing plans compared against call out charges?
Don’t forget to check bank and credit card statements.
Other resources:
Terrence Higgins Trust 50 Plus Research
Association of British Credit Unions Ltd
More information will be added to this page when it becomes available
Page updated and links checked 20 May 2012
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