Rising Prices Now Among Top Reasons for Debt Problems

Rising costs associated with everyday outgoings is now among the top handful of reasons why people are struggling with debt problems.

That’s according to the debt help charity StepChange which has said that roughly one in 10 of its clients now cite cost of living pressures as a reason why they’re having difficulties with their debts.

Inflation is currently running at unusually high levels and many millions of British households are seeing their energy bills increase significantly.

The situation is being characterised generally as a cost of living crisis, with many people finding their outgoings rising sharply with each month that passes.

A rise in debt-related problems is understood to be among the consequences of this crisis, with StepChange having seen a notable increase in visits to its website in recent weeks.

In fact, the debt help charity has said that there were 34 per cent more visitors to its website in January this year compared to December 2021.

There was also an increase in activity on StepChange’s information pages focussed specifically on ‘emergency funding’, suggesting potentially that more and more people feel as if they are running out of options from a personal finance perspective.

The advice from StepChange’s experts to anyone dealing with debt problems currently is to seek help as soon as a situation begins to worsen.

The key message is that help is always available and the charity has noted that many people try to cope with their debt issues alone for far longer than they need to.

“The months ahead look sobering in terms of the pressures on UK household finances, with the known rises in National Insurance and energy prices exacerbated further now by all the uncertainty in the geopolitical environment,” said Richard Lane, StepChange’s director of external affairs.

“At times like this, people may also be experiencing anxiety, which can be a toxic combination when combined with debt. It’s really important that anyone feeling this way knows that help is always available.”

If you live in Scotland and you are worried about your personal debt situation then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.