As the cost-of-living crisis continues to affect many UK households, Citizens Advice is increasingly concerned that many indebted consumers may be heading towards a ‘debt time bomb’.
They have found that millions of people are living on empty, seeing their basic spending overtake their income each month:
- An estimated ‘hidden’ essential bills and government debts are now worth £22 billion
- 27% are currently behind on at least one bill
- In the last 6 months, 21% have borrowed money to pay for essentials
- Over half of people with debt problems have no way of repaying their debts
Citizens Advice are calling on the government to take action urgently to prevent unnecessary detriment. The action they want to see includes:
- Removing the traps that push people further into unmanageable debt, including ending practices that mean people become liable for their whole council tax bill after missing just one payment
- Fixing debt relief, so people are not priced out of a fresh start when they need it
- Introducing a statutory bailiff regulator to ensure people are treated fairly if they face enforcement action
- Introducing measures to monitor the levels of household debt