UK debt on the rise
Increasing numbers of people in the UK are falling into debt, new findings from the Citizens Advice Bureau (CAB) have revealed. With the organisation expressing concern that many people are struggling to pay everyday bills, should more be done to address the ever-increasing cost of living?
A new trend among low-income earners
Speaking to ITV News, Julie Ann Evans from Cynon Valley CAB said it’s “a huge concern” that more people on low income aren’t able to pay their household bills. “Sometimes it only takes one life event to mean people do have debt,” Ms Evans added, and losing a job or becoming ill are examples of common debt triggers.
The day after Ms Evans’ comments, CAB released a wider study that revealed the impact of debt on people’s lives. The research found that almost 4.3 million people have debts worth at least three times their monthly wage – with the average amount owed among this group standing at £6,500.
Debt impacting “life chances”
CAB discovered that those in debt are less likely to seize new opportunities. Almost half (45%) of people in the £6,500 debt bracket said what they owed deterred them from launching a business. By contrast, just a third of the general population would be reluctant to become an entrepreneur.
A further 41% said their debt put them off retraining or studying – something that just over a quarter (27%) of the greater population echoed. Meanwhile, 28% said owing money meant they were less likely to apply for a new job.
CAB’s Chief Executive Gillian Guy responded to the findings by calling on the government to prioritise unmanageable personal debt. “The new Prime Minister has rightly pledged to improve life chances for all”, Ms Guy commented. “[A]t the centre of this effort must be a commitment to support people [to] get free from unmanageable debt so they can get on in life.”
If you’re struggling with debt – household or otherwise – and need advice from professionals, don’t hesitate to get in touch with Dukes Bailiffs. Our customer service operators are here to show you how you can manage what you owe.