Renters have been plunged into debt misery

Debt web

More than 600,000 people contacted a money advice charity with debt worries last year

14th March 2018 by Gareth Jones 0 Comments

Single parent families and those who live in rented accommodation are at higher risk of falling into debt.

The StepChange debt charity has revealed that financial problems are more acute for certain groups.

It was contacted by 619,946 new clients for debt advice last year - 3.5% more than in 2016, and 22% more than four years ago.

The charity’s findings reveal that younger people are falling in to debt, with two thirds of the people that get in touch younger than 40.

And a staggering 80% of the charity’s clients live in rented accommodation. A fifth of those who got in touch lived in single parent families.

Phil Andrew, StepChange chief executive, said that debt affects people across society, but some groups were more susceptible to problems than others.

"Our clients show that the debt problem is far from solved,” he said. “With the prospect of higher interest rates ahead, it would be a mistake to take too much reassurance from the gradual improvement in the wider economy.

"Debt charities help clients to pick up the pieces when things have gone wrong. But it's vital that the government, regulators and those in the industry do everything they can to head off problems from occurring in the first place.”