You are here: Home - Credit Cards & Loans - News -

More than eight million live with problem debt

Written by: Paloma Kubiak
One in six people in the UK today are living with a debt problem, up from the number recorded in 2016.

A report by the Money Advice Service and CACI revealed 8.3 million people (15.9%) in the UK are living with a debt problem. This is up from the 15.4% reported in 2016.

The figures show people living in Newham, East London, are estimated to have higher levels of over-indebtedness compared to anywhere else in the UK. This means they struggle to meet monthly bills or have already missed a number of bills within a six-month period.

Tower Hamlets in London takes second place (22.7%), followed by Sandwell, West Midlands (22.1%). However, according to the research, those in East Dorset (9.7%), Mole Valley, Surrey (9.9%) and Chiltern, Buckinghamshire (9.9%), are reported to have the lowest proportion of over-indebted residents in the UK.

Regionally, the top two over-indebted regions in the UK are the North East (17.7%) and Wales (17.7%), followed closely by London (17.2%) and the North West (16.9%).

Sheila Wheeler, director of debt at the Money Advice Service, said: “This research tells us that one in six people in the UK have financial worries, a figure that stands at over 8.3 million.  Debt is a complex challenge and one that needs a collaborative approach if we are to successfully address it.”

The research comes as the boss of the city regulator, the Financial Conduct Authority, said the government needs to step in to tackle the ongoing surge in credit amount the most vulnerable.

In an exclusive interview with The Guardian, Andrew Bailey said he had concerns about the sheer numbers borrowing to make ends meet, particularly gig economy workers without guaranteed hours who needed credit to fill income gaps.

Bailey said: “I don’t think we have a sustainable solution, in terms of the provision of credit where needed. No one body might solve it on their own.”

The FCA boss has placed the issue of consumer credit at the centre of the watchdog’s agenda this year as figures reveal consumer credit, which covers personal loans, credit cards and borrowing for cars, is rising at just under 10% a year at a time when wages are falling at 0.4% a year, taking inflation into account.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
‘Wary women’ shun investment brands and products

There remains a huge disparity between men and women when it comes to stock market investment, with women tending to...