Gambling and Debt
Here at Lowell, we understand that gambling can be a difficult topic to tackle, and that it can become a serious problem that can lead to longer-term issues. We also know that gambling and debt can both be taboo topics which is why we’ve created this guide to address the ways in which gambling can impact you financially, and where to seek help with gambling debt if you’re struggling.
In this guide, we’ll delve into:
- What is gambling debt?
- How to clear gambling debt
- Can you get an IVA if you gamble?
- Can gambling affect your benefits?
- Do Lowell purchase gambling debt?
This content is intended to be an impartial guide regarding gambling and debt. Lowell Financial Ltd does not offer financial advice. You can find out more about the organisations you can contact in our guide on debt help and support.
What is gambling debt?
Generally speaking, gambling debt is the money that you owe as a result of not being able to afford how much you’re spending on gambling activities. This doesn’t just refer to the money owed to the gambling company but can also include creditors such as a debt collection company like Lowell, a credit card issuer, or sometimes even family and friends.
Some warning signs that a person’s gambling habit may be getting out of control, which could then lead to debt, could include:
- Not being honest about gambling with loved ones
- Using a loan or borrowing from loved ones to pay for gambling
- Putting more money into gambling to try and win back losses
- Missing priority payments (e.g. rent and mortgage, council tax, utility bills, etc) and putting money towards gambling instead
As evidenced above, if someone is spending all of their money on gambling, this could also lead to other financial issues, such as falling into rent arrears or dealing with council tax debt.
This also goes to show why it’s important to shed light on the reality of what might happen if you’re at risk of falling into debt from gambling. We’ll touch on this in more detail further down in this guide, but there are various organisations that you can turn to for free debt advice and guidance, including StepChange and Citizens Advice.
What is the average gambling debt in the UK?
According to a 2021 report from Citizens Advice, the average value of gambling debt was estimated to be £10,000. The same report also stated that in 2021 there were 3.3 million people in the UK dealing with gambling debt.
Looking into some more recent figures, the Gambling Commission states that the total gross gambling yield of the UK gambling industry stands at £15.1 billion as of March 2023,1 compared to £12.7 billion in the period of April 2020-March 2021.2
How to clear gambling debt?
We understand that dealing with any sort of debt can leave you feeling concerned and worried, especially if it’s beginning to impact other areas of your life. But there are ways you can start to try take control of your situation and begin dealing with your gambling debt.
Seek professional advice and help with gambling debt
There isn’t one particular way to resolve gambling problems, and you might find that things that seem to have worked for some people don’t work for you, and that’s completely normal.
If you’re unsure about your next steps, seeking professional advice could help you to figure out how to not only deal with gambling debt but improve both your overall financial situation and wellbeing.
NHS GP
You might not realise it, but your NHS GP can offer support if you’re finding that gambling is negatively impacting other areas of your life. They can then explain what professional help is available in your area that could work for you.
This may include going to a specialist gambling treatment clinic for therapy that can help you look at the way you think and behave. Alternatively, you don’t even need to speak to a GP and can self-refer to a gambling clinic nearby, if you’d prefer.
Gamcare
Gamcare is an organisation specialising in providing information, advice, and support to those who have been impacted by gambling harms. They run the National Gambling Helpline, and you can get in touch with their Advisers for free 24/7 on 0808 8020 133.
Other ways GamCare can help and support you include:
- Online live chats through their website to chat one-to-one with an Adviser
- WhatsApp chats with a Helpline adviser on 020 3031 8881
- Online message boards and forums
- Chatrooms where you can speak to others who have been in similar situations
Mind
Mind is a charity focused on mental health, including mental health problems that have arisen due to money worries. You can get in touch with Mind through:
- Their Infoline: 0300 123 3393
- By email: info@mind.org.uk
- By post: Mind Infoline, PO Box 75225, London, E15 9FS
StepChange
For free expert debt advice, you can speak to an adviser from StepChange on 0800 138 1111. You can also get advice at any time without speaking directly to someone by using their online debt advice tool on the website.
Be honest with loved ones
Being open and honest with those closest to you about your gambling debt is a huge step but isn’t always easy to do. However, speaking with someone you trust can really make a difference.
When you start sharing your experience, you may find that you no longer have the stress of keeping it secret, and those you turn to can be there to support you on your journey to dealing with your debt and taking back control of your finances.
If you’re not ready right now or aren’t sure who to trust, that’s fine. Depending on how you feel, you might find it more comfortable to reach out for professional advice from the trusted organisations we’ve previously mentioned. There are also other things you can do independently which the upcoming sections will delve into.
Alternatively, if you know someone dealing with gambling debt, our blog on how to talk to a loved one about debt includes some helpful conversation starters for reaching out and showing them that you’re there.
Block or limit gambling payments
Another potential step is to start blocking or limiting gambling payments. This could help you cut down or altogether stop how much money you spend on gambling. You can then use this money towards priority payments and paying off any outstanding gambling debts.
To do this, you can either use trusted blocking software, such as Gamban which is provided by GamCare, or you could reach out to your bank yourself and ask them to block these types of transactions or set certain limits on your account.
Identify and focus on priority debt first
If you’re looking to get your finances in order, it’s important to figure out which things need paying off first. This is because there are some debts which are classed as ‘priority debts’ due to the potential serious consequences of not paying them.
For example, mortgage or rent arrears would be classed as a priority given that you could lose your home if you don’t pay. Some other examples of priority debts include:
- Council tax arrears
- Gas or electricity bills
- Court fines
- Child maintenance
Once you’re in a position where you’ve cleared any priority debts and can keep up with the regular payments, you can then look at paying off any other outstanding debts in your name.
Let your creditors know about your current situation
We completely understand that speaking to your creditors can be daunting, but they’re there to help you clear your debt. If you’re struggling or your circumstances have changed, they won’t know until you reach out.
Once you do, they can look to see if your payment plan needs to be amended, or even whether they can put a temporary pause on your account. It’s worth noting that this is done on a case-by-case basis and will depend on your specific situation.
If you’re a Lowell customer, please do get in touch. We’ve got a friendly team of advisers in place who will be happy to listen and then look into the best next steps for you.
Can you get an IVA if you gamble?
If you’re struggling to keep up with your outstanding debts, you might be looking into applying for an IVA.
During the application process, the Insolvency Practitioner (IP) and any relevant creditors that you owe money will view your credit report and financial history. If they find evidence that you’ve been struggling with gambling debt, this may put your proposal at risk. This is because an IVA usually lasts for five years, and they want to be confident that you can stick to the terms of the agreement for that duration of time.
For more information on how this debt solution works as well as the types of debts that can and can’t be included, be sure to read our IVA guide.
Can gambling affect your benefits?
Yes, in some circumstances, gambling could affect your benefits and what you can claim.
There are some benefits which are ‘means tested’. This means your individual circumstances, including your ‘capital’, which is basically the total value of all your assets, will determine whether you’re entitled to a certain benefit or not.
Given that they’re dependent on your current financial situation, any gambling wins could mean that you’re no longer able to claim that benefit. Some examples of means tested benefits include:
- Income Support
- Universal Credit
- Pension Credit
- Council Tax Support
- Housing Benefit
- Income-based Jobseekers’ Allowance
For the benefits which aren’t means tested, as long as you’re legally allowed to gamble, these are unlikely to be impacted, but you should still be honest about your capital following any changes.
Benefit fraud is a serious offence. If you’re not sure whether gambling might impact your benefits, you can seek professional advice from an organisation like Citizens Advice.
Do Lowell purchase gambling debt?
No, Lowell don’t purchase gambling debts from gambling companies. We do sometimes purchase credit card debt – so the only exception is if you’ve used a credit card to gamble, then that might be purchased and owned by Lowell.
However, if you’re struggling with gambling debt and have a separate debt with us, we’re here to listen and help.
All of our payment plans are set up based on your individual circumstances in order to ensure that they’re both reasonable and sustainable. We do this by using our budget calculator tool to get a broad overview of your finances – it’s worth mentioning that you can also access this tool for free yourself.
If your circumstances change, please get in touch with our team so that we can update your account details accordingly. Alternatively, if you’re looking to make a payment on your Lowell debt, you can do so by using our online portal or through the Lowell mobile app.
To find out more about how we work at Lowell or discover helpful information on other debt-related topics, we have lots more articles that you can read over on our Debt Guidance Hub.
Sources:
First Published: 6th August, 2024