Energy price rises 'tip of the iceberg' as Shrewsbury money expert struggles to balance clients' books
A money expert believes the impact of energy price rises could be the "tip of the iceberg", as advisors try and help people whose cash woes have caused mental health damage.
Heather Keates, of debt charity Community Money Advice in Shrewsbury, said for the first time in 25 years in the industry, she is finding clients whose books she cannot balance.
And she fears for Salopians on middle to low incomes, who could "drop off the edge", as well as concerns over illegal loan sharks taking advantage of vulnerable people.
"We're seeing more people asking for help and we're seeing more people coming to us with more complex problems," said Heather.
"We're having a lot whose mental wellbeing has been really badly hit from running straight from Covid and lockdown, and now having to try to make ends meet. It's quite complicated. Our concern is that we're just starting to see the tip of the iceberg."
She added: "When the prices go up at the end of the week it is going to have a huge impact on people. The interest rates will affect people with mortgages. Getting to and from work is sadly getting more expensive. I think we're just starting to see what the impact is going to look like.
"We are really concerned about people on middle to low incomes. A lot of them have been just about scraping by. Although during Covid they might have been saving money, now we are going to see those people dropping off the edge.
"We know people have begun to look towards loan sharks. Because providers like Wonga have gone out of business, some people have turned to illegal money lenders, which is quite concerning.
"For me personally, it's 25 years since I got involved in giving money advice. But it's really only been in the last couple of years where there have been people have come to me and there is nothing I can do to get their income to be more than their expenditure. We just can't get their budget to balance.
"It's very easy to blame the government and say they should be picking up the pieces. If you look at the big energy companies, is it really necessary to hike the prices? They are making massive profits as it is."
However, Heather insisted there are things people can do to save money, and urged people in trouble to talk to someone to get their finances in order.
"There are ways you can save money," she said. "Things like making sure you're turning everything off at night, not charging your phone when it's already fully charged. Taking a look at the subscription services you are signed up to and making sure you're only paying for the ones you actually use and need. Are people getting the benefits they are entitled to? It's always worth looking into your benefits entitlement.
"We're all going to have to tighten our belts. It's very easy to hit a bump and find yourself in trouble. But there is always free help available and it's always worth talking to someone if you're in a pickle."
