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Cost of Living sends personal debt skyrocketing

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Drew Huskisson

As we start the New Year, resolutions we made as the clock struck midnight on New Year’s Eve are undoubtedly being put to the test. You may be one of the new additions at the gym or possibly decide to abstain from alcohol through Dry January.

However, for millions of people across the UK getting help with personal debts will undoubtedly be one of their New Year’s resolutions.

This much more so than previous years, as recent research carried out by as part of their annual debt index shows that over the last 12 months personal debt (excluding mortgages) in the UK has more than doubled from £9,246 in 2020 to £25,879 in 2021.

Worryingly, when looking at average debt in cities, Bristol  personal debt was the 6th highest in the country at an average of £19,797, an increase of 144% from 2020.

Credit cards remain the top debt type among those surveyed at 32%, with payday loans and product payment plans accounting for 27%.

Worryingly this jump in personal debt is due to the impact of the cost of living, with a third (32%) of those experiencing more debt due to basic living expenses such as food and bills, with another third (32%) saying the coronavirus pandemic had also had an impact.

Which is even more reason to keep that New Year’s resolution of getting help with your problem debts. If you are struggling with problem debt, please do reach out and our team will support you through a range of channels including: face-to-face, phone, video, WhatsApp and webchat.