One in three expect household spending to increase

New research by StepChange Debt Charity ahead of the school summer holidays has revealed that almost one in three (29%), equivalent to around 15.5 million people, expect their household spending to increase over the next few months, including 31% of parents with children aged 18 and under.

Of those saying their household spending will increase in the next few months, four in five (80%) say this is because they expect to spend more on essential costs such as rent, food and bills. Almost one in three (30%) say it is due to spending more on holidays, events and activities.

Meanwhile, despite inflation falling to the target 2%, the new figures show that one in five (22%) people who use credit are currently borrowing more than they did 12 months ago. This rises to one in three (32%) parents with children aged 18 and under.

The figures come as StepChange launches a new summer campaign around credit confidence, informing consumers of what to be mindful of surrounding borrowing and credit use, and how to avoid spiralling fees and potential debt problems.

Vikki Brownridge, Chief Executive at StepChange Debt Charity, said “With the summer in full swing, and people start to head off on holiday or see their expenses increase due to kids being at home, we know credit may be useful for those extra costs. However, the credit market can be complicated, between how readily available expensive credit is, to lenders offering people too much credit, there’s a real risk that those who are struggling may end up borrowing more than they can afford.

“Pressures brought on by the cost of living crisis are also far from over, with many still struggling to cover regular bills and credit commitments. Even with interest-free credit such as BNPL, not keeping on top of payments could lead to late fees and charges. If you are worried about meeting credit repayments, it’s important not to wait to get help, speak to your lender who will offer tailored support and guidance. At StepChange, we offer completely free and non-judgmental debt advice, and can walk you through your options for dealing with your debt.”