Credit, Collections & Insolvency News
MoneyPlus Advice, a Manchester-based debt advice firm offering help to people struggling with unmanageable debt says they are seeing startling data for just how much cost of living is influencing debt enquires.
Between 2020 and 2022, customers citing ‘cost of living’ as their reason for seeking debt advice, increased by 450%. A sharp increase of more than triple pre-covid times.
Company CEO and founder Chris Davis said “The number of people seeking debt advice due to the rising cost of living has more than doubled this year alone. We’re hearing that higher bills are leading some people to pay for everyday essentials, like groceries, on credit cards.”
“When the credit runs out, some turn to debt consolidation loans, and their total debt level just increases.”
“These numbers look to be the tip of the iceberg for the year. Since February, cost of living inquires rose a further 12%, and based on what we’re seeing, we predict a further rise to 20% in October.”
With 2022’s rising cost of household bills, and with energy price estimates rising as high as £5,000+ in January 2023, the figures suggest that current costs will force a new wave of low-income households into unaffordability.