12.8m struggling to pay bills

The number of households struggling with heavy debt has increased by two thirds since 2017, according to charity Debt Justice.

The report shows that around 12.8 million adults in the UK are falling behind on bills or finding repayments a struggle. The Financial Conduct Authority’s Financial Lives survey found that 7.7 million adults in the UK were over-indebted in 2017, meaning they had missed payment for credit commitments for three or more months or were finding bills a heavy financial burden. By May 2022, this had risen to 9.6 million and the total hit 12.8 million in January this year.

Debt Justice says that a lack of suitable options to reset finances can mean people in debt are weighed down for years, forced to go without essentials and vulnerable to exploitative companies selling unsuitable fee paying ‘solutions’ such as IVAs.

The buildup of unpayable debt will weigh down households, acting as a drag on the economy for years to come unless the government recognise the severity of the household debt crisis and moves decisively to ease the burden.

Heidi Chow, Executive Director of Debt Justice said “The government is turning a blind eye to the colossal household debt crisis that is engulfing millions of people at breakneck speed. Instead of ignoring the problem they need to raise incomes, boost the protections for people in arrears and write off the unpayable debts to give everyone that needs it a fresh start.”