Financially ‘vulnerable’ Brits in real trouble
Research carried out by the Consumer Credit Counselling Service (CCCS) has identified 6.2 million British households as financially ‘vulnerable’.
The national debt charity found that, of this figure, 3.2 million are ‘already in financial difficulty.'
These include families that are behind with debt repayments, subject to processes including insolvency and generally finding it hard to make ends meet.
The planned rise in gas and energy bills is only likely to add to the difficulties faced by these families already.
Lord Stevenson, Chairman of CCCS, commented on the findings. He said “Unfortunately, these figure confirm our fears – that troubled times lie ahead for many in the UK.
What this report shows is that the pain is going to spread wider and affect many more people than the commentators have previously assumed.”
Gavin Kelly, the Chief Executive of the Resolution Foundation, summarised the issue effectively when he stated “Families on a low to middle income face a combination of squeezed wages, rising living costs and the fear of higher interest rate rises down the road.”
Kelly touches on lower income households and it certainly seems as though they will be hit hardest in times ahead.
Research indicates that people who earn up to £13,500 a year invariably have unsecured debts totalling 20% more than their annual income.
This figure is significantly higher than households earning between £25,000 - £50,000 and indicates the serious nature of the situation the lower down the income scale you travel.
Electricity and gas bills are projected to rise between 15-20% over the next 5 years. If the families who are struggling now have not secured some form of financial stability by then, the situation could deteriorate even more.
If you are forced into spending the majority of your monthly salary as soon as you receive it, then a prepaid credit card could help you budget your everyday spending so you have more money left at the end of the month.