I post on other forums than this one, including a UK-based financial website. Not one of those testosterone-fuelled sites full of braggarts and acronyms, but a much more human one discussing simple things like shopping and housing and pensions*.
One of the subforums is dedicated to people who are deeply in debt. Serious, many times one's income debt. I post as much as my temperament will allow to help where I'm able, as my maths is not awful and I do understand (now) the rules of money.
The UK system is a problem. Something like 40% of Britons lack the fundamental ability to manage their money** on a day-to-day basis, and so end up borrowing to make ends meet, with the result that about 8.3%*** have problem debt.
We have a welfare state, but it's imperfectly applied. It's a sure vote-winner to vilify "benefit scroungers" so that the benefits system has been amended to become punitive, rather than protective. Here's an example:
If I were to lose my job tomorrow, I might choose to register as unemployed. Naturally, while I might hope that I'm re-employed quickly, the average unemployment from redundancy in the UK is 12 months. I would go, perversely, to the nearest Job Centre to register, whereupon I would be means tested.
Let's now pretend I'm one of the 22%**** of adults that has less than £100 in savings, which would make me eligible for "immediate" income support. It takes roughly 6 weeks before benefits are actually paid. That's 6 weeks in which I will default on my rent and utility bills, taxes and be unable to shop for food. I would have to resort to finding a food bank that's prepared to hear me out. If I'm not one of those lucky adults with no savings, then I'd be expected to exhaust my savings before my application is processed - by which point, I'm beggared before the government's money arrives.
The amount provided is low - essentially just enough to cover bare essentials. But... as soon as you're on income support, everybody starts demanding prepayment. Prepaid utilities are more expensive than post-pay. PAYG phone calls are more expensive than contract. And so forth. That means the simple act of living becomes more expensive.
Then, to keep the money tap flowing, I have to apply for jobs. And I'm not allowed to turn down "reasonable" job offers. Where the UK government is concerned, it doesn't actually matter whether the job is "appropriate" so long as it's reasonable. So I, as an engineer of some experience, might be offered a job washing plates in a restaurant, which I would be forced to take.
The millisecond I start working for the restaurant, the government turns off the money tap. Never mind that I might be paid monthly in arrears and so be back to having no food again for a month, as soon as I have a job, I'm ineligible for state funding. So it's back to the food bank again, or quit and start the process over, or begin the long process of falling into the benefit trap, by having to make myself as unemployable as possible to the great majority of jobs, whilst retaining just enough dignity to be employable in something that is appropriate.
Circling back to the debt forum I mentioned earlier, there are a lot of people circling this particular drain. In every case. Every. Single. Case. the person started out as one of the 40% turfed out into adulthood not knowing the rules of money. In nearly every case*****, the person posts up their spending statement, and, every time, the first messages are, "get rid of the netflix, satellite TV, big spending on gifts and entertainment and nights out and restaurant meals." Because, from poorest to richest, everyone in this state starts off living a King's lifestyle without the means to support it.
But then, in almost every case, once people stop wasteful consumption on things that do not make them happy, every single person bar none****** makes a surplus, from those on below minimum wage, to those on megabucks. All of them.
It's a matter of finding your limits and setting your expectations accordingly - a modicum of self-discipline.
So... the solution isn't as simple as charity. At least, not outside the US
* actually, there is a bragging page, which I just ignore
** as per the UK Money Advice Service, I'll find the link later
*** as per HM Treasury
**** UK Money Advice Service again
***** There are a few heartbreaking stories of divorce, fraud or personal breakdown, but these are few compared to the simple "didn't know what I was doing and went broke" stories.
****** With the exception of those so far in hock that only bankruptcy can save them.