The ongoing cost of living crisis continues to make headlines, and a new report by Aviva adds to the growing body of evidence on the severity of the financial struggles faced by many. The data shows that around 15% of respondents feel they are losing control over their debt, with no clear way to pay it off. Among 45 to 54-year-olds, nearly a fifth expressed these concerns, painting a worrying picture of the nation's financial wellbeing.
With the retirement age approaching, it's particularly concerning that nearly half of respondents aged 55 and over still have "some sort" of debt. However, it's not just the older population feeling the pinch, as two-thirds of all respondents said they are burdened by some level of debt.
The research also found that many people are in the dark about their financial situation, with nearly one in 10 admitting they "haven't got a clue" how much they owe in outstanding debts. This figure rises to 16% among those aged 45 and over.
In the midst of these alarming figures, there's a ray of hope. Debt Free Advice, a leading service providing free and impartial advice to those struggling with debt, has seen a surge in inquiries this year. This 48% increase compared to last year reflects the escalating cost of living crisis. Furthermore, the organisation has observed a significant rise in clients with gas and electricity arrears, with increases of 47.4% and 44.4% respectively, compared to last January.
Debt Free Advice clients are primarily aged between 35 and 64 and typically come with an average of 3.9 debts. The average debt amount stands at a staggering £11,411, highlighting the gravity of the situation and the crucial need for professional advice.
Debt Free Advice’s Managing Director, Matt Dronfield, who has been discussing the new data on LBC News and Sky News, underscored the importance of their work:
These figures underscore the harsh reality that many are facing. The cost of living crisis, coupled with rising interest rates, has brought the issue of debt into sharp focus. Despite these significant challenges, we are committed to delivering the top-notch service that everyone deserves. Last year alone, our customers were over £13 million better off thanks to our free and impartial advice. With innovation, a dedicated team, and a relentless commitment to helping those in need, we're striving to help our clients navigate these turbulent times.
For anyone feeling overwhelmed by debt, remember that you are not alone. At Debt Free Advice, we're here to provide free and impartial advice to those dealing with financial strain. We've seen a rise in inquiries this year, reflecting the ongoing cost of living crisis. Our advisors are ready to provide support, whether you're dealing with utility bill arrears, juggling multiple creditors, or just need someone to help you understand your financial situation.
Don't hesitate to reach out. We're available from 8 am to 8 pm, 7 days a week, via telephone, video chat, web chat, and WhatsApp. You can also visit us at our network of face-to-face advice centres. For phone inquiries, you can reach us at 0800 808 5700. Let us help you start the journey towards a debt-free life today.
Latest Stories
Empowering young minds at Debt Free Advice
4 young adults from Hall Mead School spent their work experience with us. Read about how we helped with their financial education.
Unpacking the Impact: National Insurance Rate Cut Explained
This month, National Insurance rates have dropped from 10% to 8%, significantly impacting 27 million UK employees.
Households brace for the inevitable surge in utility bills, with electricity, gas, and water. See how this effects you.
Households brace for the inevitable surge in utility bills, with electricity, gas, and water. See how this effects you.