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Debt epidemic in the UK

debt epidemic in UK
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It is believed that almost 9 million people in the UK are in a substantial amount of debt. What is perhaps even more concerning is that only a minimal amount of people are attempting to rid themselves of their debts or take advantage of free debt management services. A survey of 5000 UK residents conducted by the Money Advice Service reveals that 18% of the population have admitted to worrying about “financial issues”.

The Causes of Debt

The rise in the cost of living, and unemployment, are cited as just two of the reasons for this debt and Caroline Rookes, the Chief Executive of the Money Advice Service states: “Millions of people could escape their spiral of debt by accessing free advice”. The five areas majorly affected are Nottingham, Manchester, Knowsley, Liverpool, and, according to the survey the most seriously indebted city is Hull, with 43.1% of the inhabitants struggling to cope with their debts. Some of the most pressing debts include repayments to payday loan companies, mortgages, rent and bank loans.

A Diverse Survey

The results reflect a diverse range of society with working families, larger families, benefit claimants, students, retired pensioners and first time workers all included in the survey. Two thirds of those affected are below the age of 45 and the 75% of this group are women. The group with the most debt are families claiming benefits. People solely claiming benefits account for 20.2% of the overall number of participants in the survey that are worried about their debt.

Where to go for Help

The Money Advice Service urges those that are concerned about their debts to ask for assistance as soon as possible. Its website can help people struggling with their finances by offering budgeting advice and help with negotiating payments with different agencies. There are several other debt management charities that have been approved by HM Customs and Revenue, including the Citizens Advice Bureau, the National Debt Line and the Debt Advice Foundation.

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About Denise Morgan

About Denise Morgan

Denise has five years' experience writing for various web-based companies. During this time she has also contributed to magazine articles and brochures. In addition to writing, Denise is a gigging singer/songwriter and is proud to have featured on the first series of BBC One's The Voice UK, having been selected by the great Sir Tom Jones. Denise is mother to the most talented and ridiculously intelligent two year old that has ever been and ever will be (until she creates another one that is). This kind of hyperbole is restricted only to her progeny and is not a reflection of her usual writing styles... Denise and her son live in Manchester along with their five cats - yes that's right, five.

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