Millions of homes in the UK have been identified as financially vulnerable, which could mean serious debt problems are on the near horizon for the maj…
Millions of homes in the UK have been identified as financially vulnerable, which could mean serious debt problems are on the near horizon for the majority of Brits.
According to the Consumer Credit Counselling Service (CCCS), 6.2 million households have been flagged up as having significant monetary difficulties in its Debt and Household Incomes report.
In addition, 3.2 million people are already in financial difficulty, with these consumers admitting they are either subject to some kind of debt action like insolvency, or are three months behind with a debt repayment.
The study also revealed that those who were most vulnerable included the two million households with annual incomes of less than £13,500, 4.3 million with low or zero savings to their name, 2.2 million struggling to pay mortgages, two million in rent arrears, 1.1 million unemployed workers and 600,000 single parent families.
Lord Stevenson of Balmacara, chairman of CCCS, stated: "CCCS was contacted by almost 418,000 people last year and our data reveals the stark realities faced by many decent, ordinary people who struggle to make ends meet in these difficult economic times."
"It is important that the complexities of their vulnerability are understood and addressed by government as well as the financial and charitable sectors," he added.
This follows comments made by Shelter chief executive Campbell Robb, who told the Daily Mirror that all it takes is one factor – such as a redundancy or increased outgoings – to push somebody over the edge into serious financial difficulty and debt problems.
By James Francis