Debt: The Silent Pandemic of the UK
In the bustling streets of Britain, a quiet storm brews beneath the surface—debt pressing hard on most households. Fair4All Finance’s latest study shows that while a lot of people feel the squeeze, many keep the struggle tucked away, fearing the debt could spiral into an endless nightmare.
Key Findings
- Two out of every three adults (63%) are wrestling with bills.
- About 15% of people are left guessing whether they’ll manage to cut down what they owe in the next year.
- Alarmingly, 82% of folks admit they haven’t reached out for financial advice since mid‑2023.
When Help is Needed, Where Do People Turn?
- Only 25% turn to formal debt advisers or council services.
- 32% trust family, while 25% lean on friends.
- Bank or current account providers catch the eye of just 19%.
Inside the “Power Outlets” of Financial Support
- Energy companies emerge as a surprisingly powerful ally—18% of respondents sought help from them in 2023, a two‑fold jump from 2022’s 9%.
In a world where a rising cost-of-living crunch keeps tightening its grip, the most pressing bad habit is staying silent. The next step? Break the quiet, tap into those new channels—perhaps a friend, or even your local energy provider—and start breathing easier.
Coping mechanisms risk short-term relief becoming long-term pain
Credit‑Card Juggling: Why People Are Holding Off on Bills
In the UK, folks are more and more turning to “delay-and‑pay” tricks, piling up card debt, BNPL offers and online overdrafts that keep their finances ticking over. A recent snapshot shows a 52% credit‑card uptick (vs. 47% last year), 20% jump in BNPL use (up from 15%), and a 21% rise in online loans and overdraft packages (up from 19%).
Why the “pay later” game can backfire
Sure, these tools can slice up a hefty bill so it looks like a small monthly dent. But juggling several commitments at once can inflate total debt and pull people into a roller‑coaster of missed payments and mounting stress.
When the big banks say “no”…
Lacking approval from mainstream lenders pushes many to the under‑the‑table side of finance. With regulated lenders pulling back, a dangerous “credit vacuum” opens up—especially for low‑income borrowers who find fewer safe options.
Illegal lenders: the dark side of the debt landscape
- Fair4All Finance uncovered that over 3 million Britons may have dipped into illegal moneylenders in the last three years.
- Lauren Peel, Director of Consumer Insights at Fair4All, says talking about debt is the first, simplest step to escape the spiral.
“People keep worry to themselves, but the first thing is opening up about it,” Peel says. “The moment we stop hiding, we can start reaching out for real help.”
Community credit unions: a lifeline for the stressed wallet
Ian Brewer, Community Development Lead at Bradford District Credit Union, highlights their 10,000+ members and 30‑year track record.
Brewer argues we’re on a mission to empower “every single person” to take control of their finances, especially for those feeling trapped.
- Potential projects range from saving for school uniforms to cutting food crunch, tucking aside cash for Christmas, and, of course, debt advice.
- “Everyone knows we’re not alone with money worries,” Brewer says, urging anyone grappling with finances to tap into local credit union support.
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