8.1 million people in need of debt advice

New statistics from the Money and Pensions Service (MaPS) has revealed that more than eight million Brits need to get debt advice.

The research was conducted July-September 2023, and found that 8.1 million people (15%) need expert advice to deal with their debts.

The debts range from council tax, utility, rent and mortgage arrears.

The research also shows that another 12.6 million people (24%) are now at risk financially, meaning they’re struggling to keep up with bills and borrowing commitments, and unable to afford food or essentials. 

Research from Hargreaves Lansdown's Savings & Resilience Barometer found that the average household in the UK is already spending £406 on monthly debt repayments, with figures from the Bank of England showing that credit card debt is up 12.7% in a year, and other debts such as overdrafts, loans and car finance are up by 6.7%.

These figures combined show that over a third (39%) of the UK population either need debt advice or are at risk of needing it very soon.

Who needs debt advice?

According to the data, more than half (55%) of people needing advice are 18–34-year-olds, even though that age group makes up less than a third of the population.

 73% of people in debt earn less than £30,000 a year and 27%  work in temp jobs with fixed term or zero hours contracts

Anna Hall, Head of Debt Operations at MaPS, said “Millions are currently battling on alone without the help they so desperately need. Many people wish they’d acted faster, but no one ever says they got debt advice too soon.”

Mortgage debt

Additionally, the research from Hargreaves Lansdown's Savings & Resilience Barometer found that the average household is paying £814 a month in mortgage repayments.

This means that almost one in ten households are in arrears.

Hargreaves Lansdown head of personal finance, Sarah Coles, spoke about the affects mortgage repayments were going to have on households;“ (By the end of this year) 340,000 households will be ‘high risk’ because in addition to hefty mortgage repayments they don’t have enough savings to cover at least three months’ worth of essential spending, and 390,00 will be at ‘critical risk’ because in addition to both these things, they have unsustainable levels of spending.”

How can I get debt advice?

Shame and embarrassment are common feelings when talking about debt, and it can be overwhelming to know what to ask for or where to start.

So, if you’re currently struggling with your debts, and don’t know what to do about it, we can help. You’re not alone, and there is help available to you. All our debt advice is free and impartial.

Our free debt advice is available to people all over the UK, online or over the phone. We’ll go through your finances in detail and explain your options. You might be surprised at the range of help available. We can:

• check you’re getting all the benefits you’re entitled to
• help you with budgeting
• advise you on debt solutions

 There are various debt solutions available that reduce your monthly debt repayments and even write off some of your debt. We’ll let you know if any of them are suitable for you. All our advice is free. Some debt solutions are free, while others come with a fee. We’ll give you all the information you need to make an informed decision and, if we recommend a debt solution and you decide to go ahead, we’ll help get it set up.