Online comparison site money.co.uk has looked into the true extent of Britain’s debt and how it affects us all, including which areas will be worse off after the cuts.
A new service created by the Consumer Credit Counselling Service (CCCS) has been introduced to automatically screen for depression and anxiety when anyone uses ‘Debt Remedy’, their online debt counselling service.
The link between depression and debt is well established. Recent research shows that between 50% and 90% of people in debt are anxious or depressed and are twice as likely to have suicidal thoughts.
According to a recent BBC article, UK households are still struggling financially.
The annual poll of almost 2,000 homes for the Bank of England found that more than half struggled to meet repayments for credit card or other unsecured debts.
About 22% of respondents said they were put off spending because of concern that it was becoming harder to borrow. However, fewer than half had taken any steps in anticipation of budget cuts, such as increasing savings, working longer hours or looking for a new job.
According to a recent BBC article, the Council of Mortgage Lenders (CML) predicts that mortgage arrears and repossessions will rise modestly next year.
They say that mortgage rationing by banks and building societies will continue, as will the current low level of house sales.
More than four million people fear being made redundant according to R3, the trade body for Insolvency Professionals. R3’s quarterly personal debt tracker shows an increase of 50% over the last three months with those aged between 25 and 34 being the most worried (16%).
Customers who do not look for the best current account could be losing out on £2.2 billion in potential interest, according to a new report by Santander.