Friday, October 21, 2022

Mounting Debt Looms Ahead

 


Almost eight million people are struggling to pay their household bills.  

The Financial Conduct Authority (FCA) estimated that 7.8 million people in the UK currently find bills a "heavy burden", up from 5.3 million in 2020. Energy, food and fuel prices have risen sharply in the last six months.


Inflation - the rate at which prices rise - increased to 10.1% last month, returning to a 40-year high. UK food prices jumped 14.6% in the year to September - the biggest annual rise since 1980 - with the cost of key goods like fruit, milk, cereal and sugar all climbing.


The FCA surveye found:

  • One in four adults described themselves as being financially vulnerable, meaning they would quickly find themselves in difficultly if they suffered a financial shock
  • Some 4.2 million people had missed bills or loan repayments in at least three of the six months before the survey took place
  • 27% of black respondents said they found it a heavy burden to keep up with bills, compared with around 15% of UK adults generally.

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