Citizens Advice has been warning for some time that one consequence of the ‘cost of living crisis’ would be a sharp increase in levels of debt across the UK, and the rise that we feared is now clearly happening.
Nationally, we are helping almost 40,000 people every month with debt issues, with the number requiring help increasing 21 per cent between the second and third quarters of 2023 alone.
One in four people in the UK (27 per cent) are currently behind on at least one bill and the situation looks sure to deteriorate in coming months.
Millions of people are doing their best to balance the household books, but the numbers simply don’t add up. Too many people are living on empty, unable to pay their bills or even put food on the table.
We have found one in five (21 per cent) of people have borrowed money to pay for essentials, such as groceries, in the last six months.
When families’ basic costs, such as food and energy bills, outstrip their sources of income every month, they get into debt and subsequently they find it extremely difficult to get out of the red.
More and more of the people who are coming to us for help with debt are in a negative budget (i.e. their essential outgoings exceed their incomes), and this includes new groups, such as those in employment and mortgage holders.
Current systems contain many traps and hurdles that make it hard for people who have drifted into debt to get a fresh start.
The high level of benefit deductions can eat away at people’s income, pushing them into negative budgets, a sure-fire way of slipping into debt.
If someone misses just one council tax payment, they can become liable for a whole year’s bill, a scenario that often results in bailiffs knocking at their door.
And those seeking a way out of debt are met with upfront fees for debt relief, pricing them out of the right solutions for their situation.
We need an approach that offers more support and realistic routes out of debt. Citizens Advice is calling for reforms to how debt is collected and managed so that people can pay back what they owe in an affordable way, rather than being pushed further into the red by aggressive and punitive practices.
In the meantime, if you need help with your debt problems, Citizens Advice can offer you independent and confidential support.
In St Albans, we can be reached on 01727 811118 from 10am to 4pm Monday to Thursday and 10am to 1pm on Friday. Or you can call the
Herts Adviceline on 0800 144 8848 between 10am and 9pm Monday to Wednesday, 10am and 8pm on Thursday and Friday and 10am and 4pm on Saturday.
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