Nearly a quarter of UK adults are in a “constant struggle” to manage their debts, a charity has warned, as it predicts a surge in demand for debt advice.
The Money Advice Trust (MAT) said around 10m people, roughly 20% of the UK adult population, were finding it hard to manage their debts.
This comes on the back of a rise in the amount of people seeking help from free debt advice agencies to 1.54m in 2011, up from 1.4m in 2010.
MAT also warned that there was a far larger ‘latent’ demand for help, estimating that 2.5m individuals in arrears on at least one consumer credit product, household bill or payment.
Joanna Elson OBE, chief executive of the Money Advice Trust, said: “With unemployment rising and wage growth relatively flat, whilst prices are going up, day-to-day living will take up more and more of your money, which can make it hard to pay the bills.
“Our research shows people are going to extreme lengths to get on top of their finances, with some selling treasured items, such as jewellery, cars and even pets, just to make ends meet.”
The research, carried out by the University of Nottingham for the Money Advice Trust, is an update on previous work forecasting demand for debt advice in the UK.
Based on the Office for Budget Responsibility (OBR) economic forecasts, the research predicts a sharp rise in demand for advice on debts in the first half of this year, mostly down to growing unemployment and stagnating wage growth.
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