New research from the Financial Conduct Authority (FCA) has found that while many are struggling to meet financial commitments 7.4 million people were struggling to pay bills and credit repayments in January 2024, down from 10.9 million in January 2023. This is still higher than the 5.8 million recorded in February 2020, before the cost of living squeeze began.
The research found that 5.5 million people said they had fallen behind or missed paying one or more domestic bills or credit commitments in the previous 6 months from January 2024. This was down from 6.6 million people a year earlier.
In the 12 months to January 2024, 2.7 million adults sought help from a lender, a debt adviser or other financial support charity because they found themselves in financial difficulty. Nearly half (47%) of those who sought help said they were in a better position as a result. However, two in five adults who had fallen behind on their bills said they had avoided talking to their lender about their finances.
Renters, single adults with children, adults from a minority ethnic background and people living in the north-east of England were more likely to be in financial difficulty.
The figures show that 14.6 million people (28%) aren’t coping financially or are finding it difficult to cope. This is down from 36% a year earlier.
The number of strugglers rises to 60% among those with a household income under £15,000, 55% among unemployed households, 50% among renting households and 55% among single parents.
Sarah Coles, Head of Personal Finance, Hargreaves Lansdown said “The cost-of-living crisis is easing for millions of people, but for millions more, inflation still has an iron grip on their finances. If you’re wrestling with impossible bills, it’s vital to get the help you need. If you’re finding life slightly easier, this is the time to rebuild.
A worrying number of people are still facing horrible challenges. Some 7.4 million people (14%) still feel their bills and credit repayments are a heavy burden, 5.5 million (11%) have missed at least one bill in the past six months, and 5.9 million (11%) have no disposable income. All of these figures are down from last year, but it still means a horrible struggle for an awful lot of people. People in this group include huge numbers of those on lower incomes, unemployed households, renters and single parents.
Struggling With Unaffordable Debt?
If you would like to talk to someone about debt, we offer a free and confidential consultation to anyone in financial difficulty. We can advise you on a range of debt solutions suited to your individual circumstances, helping to protect you and your family with a sustainable way to manage your debt. Call 0800 121 48 63.
