Households are currently borrowing more than a billion pounds a month in a spending spree that is fuelling a dangerous debt crisis.Read the full story ›
Nationally, unsecured debt, excluding mortgages, currently stands at a record high of £349 billion.Read the full story ›
A Sutton Trust report has found those who graduated last year under the £9,000 fees regime owe an average of more than £44,000.Read the full story ›
People's reliance on personal loans, credit cards and overdrafts will lead to an increase in debt levels, according to a new report.Read the full story ›
Actor Brian Cox says the impact of childhood debt is impossible to underestimate.Read the full story ›
The Children's Society has warned of the dangers of ignoring the emotional impact family debt has on children.
Chief executive Matthew Reed said:
Families are increasingly relying on debt as a way to make ends meet - but we're in danger of ignoring the impact this is having on children now and in the future.
We cannot allow children to pay the price of debt.
Poor families facing financial difficulties need "somewhere to turn" other than to unethical and predatory lenders, a leading figure in the Church of England has said.
The Archbishop of York, Dr John Sentamu, gave his backing to a report into UK household debt and the distress it causes children:
When the monthly struggle to pay the bills becomes too much, often families think they have no option but to borrow money to provide the basics for their children,.
We need to make sure families living in poverty have somewhere to turn other than to usury-lenders.
One in five (18%) of UK households with children are faced with "problem" debt, according to a survey from two leading charities.
The Children's Society and StepChange debt charity also found:
- On average these households owe £3,437, or an estimated £4.8 billion to creditors and the Government.
- An estimated 2.4m children are living under "problem" debt.
- A further 2.9 million households with dependent children are struggling to keep up with payments on household bills or credit over the past year.
- Almost 18% of 10 to 17-year-olds who took part in the survey had been bullied because of the financial troubles their family faced.
- Over half of the children researchers spoke to said they were embarrassed by their lack of money.
At least 1.4 million families are living with "problem" debt with a further three million households on the verge of sliding into financial difficulty and leaving their children in distress, according to a new report.
The Children's Society and StepChange debt charity have warned about the emotional toll an "extremely precarious" financial position puts on the children of the family.
The stress of keeping up with repayments leads to rows, emotional distress to children and cut backs on essentials, the charities warned.
Research conducted by the Financial Conduct Authority (FCA) suggests outstanding UK consumer debt is estimated at £12.8-15.2 billion, and fees for debt management plans are estimated to be £25 million a year.
Christopher Woolard, director of policy, risk and research at the FCA, said:
Debt management firms must start putting consumers first.
It's frankly unacceptable that those people who are struggling to make ends meet are being talked into unsuitable plans.