The Money Charity have released their debt statistics for October 2023 with an emphasis on UK families having to bear the impact of the cost of living crisis.
Remember that you can view the statistics from last month here in order to compare with the October 2023 debt statistics.
The statistics this month are headlining with the fact that UK families are bearing the impact of the cost of living crisis. Basic everyday costs have increased so much so that the income of an average family in the UK cannot meet the cost of their outgoings. Most families in this position do not qualify for any government help either, so many are now resorting to drastic measures in order to stay financially afloat.
Last month it was reported that bills were piling up for many UK households due to the slowing of the rate of inflation and the increase in fuel prices. Now, it is being reported that 25% of working parents in London have had to skip meals or not buy food for themselves, in order to feed their children. 1 in 7 families surveyed have missed an essential payment such as a housing bill, loan or credit card payment. This statistic relates to the time of year when many families have had to pay for school essentials at the start of the new school term. The next couple of months are filled with festivities and the pressure to deliver on this, so we expect that this situation will get much worse.
The statistics also highlight the impact of the rising costs on those on low incomes. This “poverty premium” where those on low incomes spend more for essential goods and services, shows that a third of UK households are living in fuel poverty and 13% of UK adults are going without gas or electricity at least monthly. It is a sobering look at how the cost of living crisis is impacting in real terms, especially when we see that many more children are entering poverty.
If the past year has had a negative impact on your financial situation, or you are facing increasing debt costs over the next few months, feel free to call us for a discussion on what debt solutions could be available to suit your personal situation.