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One in six UK adults are living with problem debt

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A major study, based on a model developed by the Money Advice Service and CACI, was published last week and estimates the levels of over-indebtedness in the UK.

 

Responding to the report published by the Money Advice Service local MP Mike Kane said:

 

“16,000 people in Wythenshawe & Sale East are over-indebted. This is further confirmation of the challenge we know we face in Wythenshawe & Sale East on debt.”

 “The report highlights that renters, young people and those with large families are most vulnerable to problem debt.”

 

Mike added: “As a Member of Parliament one of my key priorities is to tackle this issue for residents in Wythenshawe & Sale East. That is why later this year I will be bringing key partners together for an action focused conference on short and long-term ways we can work together to tackle indebtedness.”

 

“I am already working with the City Council, Credit Union, Hospital, Residential Landlords Association and one of our local debt management companies on this issue. At the event later this year I hope to widen our partnership to work. Those interested in getting involved please do get in touch with my office.”

 

ENDS

 

Money Advice Service report: https://www.moneyadviceservice.org.uk/en/corporate/one-in-six-adults-struggling-with-debt-worries

 

 

Key findings from the report:

 

 

  • Renting a property indicates that you are twice as likely to be over-indebted as those owning their home (25% versus 12%).
  • Around 16 million people in the UK rent their home with one in four (4.1 million) of them living with debt problems.
  • For those renting a social housing property this likelihood increases to nearly one in three (29% versus 21% privately renting).
  • Young adults aged 25-34 are the age group most likely to be living with a debt problem.
  • Among 25-34 year olds, one in four live with debt problems (2.1 million) – the highest likelihood of all the age bands. The research shows that the likelihood of debt problems peaks at this age, and doesn’t begin to fall significantly until the 55-64 age band.
  • While having children increases the probability of debt problems by more than 50%, the analysis suggests that there is a particularly strong relationship between debt and having three or more children.
  • Whilst 19% of adults with one or two children are over-indebted, this rises to 26% among adults with three or more children.
  • At the same time, it is estimated that one in four (28% or 1 million) single parents in the UK are living with problem debt. This is almost twice the national average, and one and a half times more likely than two parent families.

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