A charity has revealed that a high proportion of women and younger adults are seeking help with their debts. StepChange Debt Charity stated that more than three in five (63 percent) new clients are women.
It also highlighted that clients aged between 25 and 44 makeup 60 percent of those seeking help.
The charity found that nearly one in three (32 percent) people getting help were in a negative budget where they had more money going out than coming in. The number of clients receiving Universal Credit increased by three percentage points in 2023 compared to 2022, reaching 37 percent.
StepChange also noted that renting was the most common housing situation among its clients, accounting for 64 percent. The average monthly amount available to clients for debt repayment fell from £69 in 2022 to £53 in 2023.
The most common reason for debt was cost-of-living pressures, cited by a quarter (25 percent) of people seeking help. The average amount of household arrears among StepChange clients rose to £3,124 in 2023, up from £2,833 in 2022.
Typical unsecured (non-mortgage) debt among clients reached its highest level since 2013, standing at £14,654 in 2023, up from £13,563 in 2022. This increase was mainly driven by higher amounts of credit card and personal loan debts, the charity said.
In 2023, StepChange Debt Charity provided full debt advice to 183,403 clients, marking a 10 percent increase from the previous year. Vikki Brownridge, the charity’s chief executive, said: “Over the past year we’ve really begun to see the impact of the cost-of-living crisis take hold. Particularly among those on low incomes, household financial insecurity is a growing threat.”
She added: “Both a rise in household arrears and unsecured debt amounts suggests those struggling are turning to credit to cover their essentials more than ever.”
