Background
In March 2024, ‘Victor’ was referred to Catch22’s Finance, Benefit, and Debt (FBD) service for support after he was released from prison.
At the time, Victor was receiving Asylum Seeker Support Allowance and faced a series of debts totaling £15,000. Prior to his referral, Victor had experienced significant mental health challenges, including anxiety and psychosis, which worsened as his financial situation spiraled out of control. The weight of his debt led to a significant decline in his mental health, ultimately resulting in his hospitalisation.
Victor’s case highlights the intricate relationship between financial insecurity and mental health, particularly for asylum seekers dealing with uncertain futures. His struggles not only stemmed from debt but also from anxiety about how this financial instability would impact his pending asylum claim.
Intervention
Following Victor’s referral into the service, Catch22’s FBD team, in collaboration with the Financial Conduct Authority (FCA) advisory team based at Community Links in Newham, developed a 10-session action plan aimed at addressing both Victor’s financial and mental wellbeing.
The sessions focused on key areas such as:
- Managing and Dealing with Debt
- Benefits and Tax Credits
- Budgeting Basics
- Anxiety Management
Victor initially lacked confidence in managing his finances. His anxiety over his debts exacerbated the stress related to his asylum application. The FBD team worked to help Victor identify his creditors, understand the total sum owed, and begin negotiations for repayment. The goal was not just to resolve the debt but to rebuild Victor’s sense of agency and control over his financial life.
Progress
Over the course of six appointments and regular phone check-ins, Victor’s situation significantly improved. The team helped secure the write-off of £12,500 of his debts by co-drafting debt-relief letters. This relief came through direct negotiations with creditors, where the impact of Victor’s mental health struggles and immigration status were highlighted.
Throughout the sessions, Victor’s confidence grew. With the guidance of Victor’s caseworker, Victor became more involved in understanding the negotiation process and began articulating how debt had impacted his mental and financial health. This was a turning point—Victor no longer felt like a passive recipient of aid but an active participant in resolving his situation.
Catch22’s holistic approach—working across the FBD and FCA services—ensured that Victor’s financial problems were not viewed in isolation. Regular wellbeing checks, encouragement to engage with healthcare professionals, and support in attending GP appointments helped Victor see the importance of managing both his financial and mental health.
In conversations with the team, Victor expressed feeling like he had regained his independence, a crucial outcome given his earlier sense of helplessness.
Next Steps
Victor is currently awaiting a decision on his asylum claim, and Catch22 will continue to support him with the remaining debt. The final stages of his support will include completing an income and expenditure sheet to reflect his improved financial circumstances.
Through a collaborative, patient-centered approach, Catch22 has helped Victor move from a place of anxiety and helplessness to one of empowerment and independence. Victor has demonstrated significant improvement in his ability to manage his debts and is now equipped with the tools to progress independently beyond the referral. The team’s ongoing support will ensure that Victor continues on this positive trajectory, prepared to face future challenges with greater confidence.