Money Advice Trust (MAT) said it helped 150,000 people with household debts last year, a staggering increase of 140% since 2007.
Chief Executive of the MAT, Joanna Elson said,
“The gradual erosion of some families’ surplus income in the face of rising prices has led to a new generation of debt problems, one to which more people are vulnerable, one which is harder to resolve, and one which has no definitive solution.
“We’re hearing from more people in serious debt difficulty as a result of debts totalling less than £5,000. When there is little room in a household budget to meet basic expenses, paying off debts can seem impossible.
“Recent government announcements such as an increase in the minimum wage are a positive step towards helping these families, but more can be done.”
Even more worrying was the fact that 69% of the British adults in debt surveyed by the MAT had not asked for advice on managing their debts.
A recent survey by the BBC also reported that most adults facing debt problems have not sought help.
With many homeowners set to become mortgage prisoners due to negative equity over the next six to twelve months, it is likely that those struggling with debt will become immersed in financial turmoil.
Don’t wait for the cataclysmic financial storm to loom. Prepare yourselves now.