15% of UK population needs debt advice

15% of the UK adult population – around 8.1 million people - needed debt advice last year according to a survey by the Money and Pensions Service (MaPS).

MaPS’ annual Debt Needs Survey also revealed that a further 24% - 12.6 million people – are considered ‘at-risk’. These people are struggling to keep up with bills and credit commitments or are running short of money for essentials and using high-cost credit instead.

Those taking part in the survey were asked about their financial resilience and how they would cope with unexpected expenses.

46% of those who needed debt advice said they would not be able to pay an unexpected bill over £100. This fell to 35% for those at-risk and to just 22% of the overall UK population.

While 28% of the UK population said they could not cover living expenses for more than a month, rising to 43% for those at-risk and to 61% for those who need debt advice.

Additionally, 57% of those at risk said that bills landed before they could pay them – increasing to 84% for those who need help.

And while the at-risk group are just about managing, a life event could easily tip them over into financial difficulty. This has already happened to some people within this group, with 21% saying they’d faced money worries due to health problems, 19% because of a large unplanned expense and 13% due to a drop in earnings.  

MaPS used the survey to better understand how recent mortgage rate rises have impacted people.

It revealed that 35% of the at-risk group have a mortgage, which means they will have some exposure to changes in interest rates now or in the future. Most (20%) are on a fixed rate mortgage with an interest rate of 1-4% and only a few (2%) had a fixed rate term ending in 2023.

7% of those surveyed in the at-risk group were on variable rate mortgages and have been exposed to interest rate rises, and 4% are tied into fixed rates of 5% or more.

Homeowners have varying levels of confidence about the future and the ability to keep up with payments. Only half (50%) gave themselves a score of between eight and ten – with 10 meaning they are very confident about not falling behind. This was lower for the at-risk group (36%) and those who need advice (28%).

The survey also noted that more homeowners and households with higher incomes are needing to seek debt advice – something that hasn’t happened in the past.

Where can I get debt help?

If you’re struggling to repay debt or make ends meet, don’t worry – you’re not alone.

We provide free debt help to around 1,000 people a day. We can work with you to find the right solution for you depending on your individual circumstances.

We can also help:

• If you’ve been contacted by bailiffs
• If you’ve received a court summons
• By arranging breathing space
• Check to see if you’re eligible for more financial support with our benefit calculator