FAMILIES are struggling to heat their homes and put food on the table as they grapple with soaring inflation, rising interest rates and a looming recession.
Household bills have skyrocketed since a cost of living crisis took hold on the nation and there are fears we are heading towards a debt crisis.
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According to the Office for National Statistics, 87% of adults in the UK reported an increase in their cost of living in April 2022.
It highlights a worrying trend of people being forced to borrow out of necessity each month with one in ten people having used Buy Now Pay Later (BNPL) to pay for essentials, according to research by Hargreaves Lansdown.
And it is feared that this will only get worse as interest rates continue to rise and inflation soars further, despite already being at a 40-year high.
There are growing concerns that families, whose finances are already precarious, could be forced to the brink as their debts continue to grow.
The Resolution Foundation estimates an extra 1.3 million people will fall into absolute poverty in 2023, including 500,000 children.
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More debt advice and debt management services are needed to help.
Chris Davis is chief executive at MoneyPlus Advice, a Manchester-based debt advice firm, which offers help to people who are struggling with unmanageable debt.
He said: “What is clear is that we are all facing financial pressure, the likes of which have not been seen before.”
“In these circumstances, it is really important that anyone needing debt advice speaks to a company which is authorised to advise them across an array of potential solutions.”
Organisations such as MoneyPlus Advice, who help thousands of people, are now starting to see an increase in the demand for their services.
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Jonathan Mills, commercial director at MoneyPlus, said: “Too many companies often place their own needs before those of the consumer or are limited with what solutions they can offer.
“At MoneyPlus, we speak to people who feel like their debt is spiralling out of control and there’s no hope – but there is.
“Our advice is tailored to every person we speak to, making sure their options are clear and they get the best advice for their situation. Our aim is to ensure that everyone walks away with a manageable, sustainable solution, whether that’s with us or not.”
While inflation is set to fall again next year, there are fears around the long-term impact on family finances as more people take on debt to cope.
Mr Mills finished by saying “The most important thing is asking for help. You are not alone. You won’t be judged and you don’t need to be embarrassed. We’re here to help.”
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For an initial free, confidential debt consultation*:
Visit MoneyPlus Advice or call 0161 837 4010 to speak to a professional advisor.
All solutions are subject to eligibility criteria and may be subject to fees for in-house options.
MoneyPlus Advice are authorised and regulated by the Financial Conduct Authority.
*Fees may apply to services offered in the initial consultation. You will be made aware of any applicable fees before entering into any agreement with MoneyPlus Advice for such services.
