Credit, Collections & Insolvency News
New analysis published today by the Money Advice Trust (the charity which runs the National Debtline service) and data company, Experian, has revealed new insights about the pressures being experienced by UK consumers.
The analysis shows that three in 10 (29%) UK adults are worrying about their finances every day, while one in seven (15%) say they are regularly losing sleep
due to the cost-of-living crisis.
Whilst four in ten (39 percent) callers to National Debtline, the free debt advice service, wait a year or more before seeking advice about their debts and more than a quarter (28%) wait two years or more.
Income too low to cover essential costs is currently the most common reason cited for debt amongst callers to National Debtline (33 percent whilst one in five callers cite mental health (20 percent) and 19 percent say an unexpected bill.
45 percent of clients now have a deficit budget, where they do not have enough coming in to cover essentials – up from 37 percent in 2021.
Jane Tully, Director of External Affairs and Partnerships at the Money Advice Trust said “This is a challenging time for millions of people as day-to-day costs continue to rise and household budgets come under ever increasing pressure. Seeking advice about your finances can feel like a hard step to take, but the difference it can make to both your financial and emotional wellbeing is huge.”
Colin Grieves, of Experian UK&I, said “Many people are currently experiencing financial upheaval and it is important they are aware of the support organisations such as the Money Advice Trust can provide. They can help before it is too late.”
“Our analysis shows the three most common groups seeking help share some of the same characteristics households with limited disposal income and savings,
many of which are in full-time employment – but the challenges are impacting all age groups at different life stages.”
“Younger, single people are seeking help. This group is made up of people in their 20s and 30s, renting properties in city locations, and again are in full-time
employment but are struggling to make ends meet.”
“Meanwhile, both families with young children, and older workers in the latter half of their career are also found in the analysis, indicating how widespread
money worries are.
“By developing a deeper understanding of who is and isn’t seeking help, MAT can tailor its outreach and support, helping more families and people get the advice
and support they need at what is a difficult time.”
James Jones, Head of Consumer Affairs, Experian UK&I, said “If you are in financial difficulty, it is wise to get support sooner rather than later. It will feel like a big decision, but it is the first step to getting the timely help you need.”
“Not doing so could make things worse, exacerbating the issue and your worries, including prolonging any damage to your credit score.”