Quarter of people engaging in ‘risky financial behaviours’

More than a quarter of people are falling into financial patterns that are ‘troubling’, as they struggle to keep on top of high living costs.

Over the last year, inflation in the UK has been at its highest level in more than 40 years. Although the inflation rate recently lowered to the Bank of England’s 2% target, many households are still financially struggling.

With millions finding it hard to afford day-to-day essentials, more people are resorting to financially risky behaviours –making decisions that might harm your financial stability or your ability to pay off a debt.

New research by Moneyhub reveals that in the last year:

• 9% of people exceeded their overdraft limit
• 8% missed a credit card payment
• 7% took out an additional loan to pay off other debts

Of those engaging in risky financial behaviours, 6% said they don’t think they should’ve been approved for the credit they applied for, while27% of this group said their income wouldn’t cover repayments.

Nealy half of people have had to turn to short-term borrowing to cover everyday costs. Just over a fifth (21%) of them said they regularly used credit products like personal loans, credit cards, pay day loans and overdrafts in the past year to meet daily expenses.

Do you need money help?

Are you having trouble keeping on top of your costs? It may be time ask for help. 

We can help get you back on track by creating a realistic budgeting plan, helping you apply for grants, and advising you on possible solutions if you’re in debt.

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