Contrary to popular belief, most people don’t get into debt because they overspend or live beyond their means.
According to our recently released Statistics Yearbook 2014, the biggest cause of problem debt among our clients is unemployment. Just under a quarter of clients tell us it as the main reason for their debt, with a further 12.8% saying they got into debt after experiencing a drop in income.
These income shocks could happen to anyone. In May 2014, it happened to Nick and Faye* from Birmingham.
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posted by Peer in Budgeting
We’ve noticed a worrying trend of people coming to us for help with arrears on household bills. There has been a dramatic rise in people contact us for help with arrears on rent, council tax, gas, electric and water bills.
We often speak to people who’ve fallen behind on these sorts of bills but continue to pay off their credit card debt. If you’re struggling to pay your bills it’s important to know which ones are most important. Continue reading »