One in five Brits are expecting to be plunged into debt by spiralling energy prices, the rising cost of living, and the continuous fuel crisis, new data has revealed.
An incredible 42 per cent of UK adults expect they will find it tough to pay their regular household bills such as their gas, electricity, or council tax in 2022, with the figure suddenly rising to almost 50 per cent amongst 25-49 years olds in the wake of the recent spring budget.
So, with this in mind, we thought we’d take a closer look at the finer details and what this means for the general public.
42% of Brits Expect Fall into Debt
New data has revealed that the country is bracing itself for a fresh cost-of-living hike, with bills expected to rise by £1,300 per year by October 2022 – a move which could plunge an estimated 10m Brits into perceived poverty.
“These figures make for grim reading and emphasise just how dire the coming months will be for financially vulnerable people,” commented Phil Andrew, Chief Executive of StepChange, a debt advice charity which commissioned the YouGov survey.
“While the initial raft of support announced in February was welcome, the war in Ukraine has exacerbated an already difficult situation and more action is clearly needed,” he added, noting that the firm is expecting to offer debt support to 191,000 clients this year, up from 158,000 in 2021.
Making for grim reading indeed, many Brits are suddenly preparing for a future nobody thought they would ever have to.
Inflation Running at 5.5%
With inflation running at 5.5 per cent, financial insecurity and debt is already on the rise with debt services reporting a substantial surge in demand.
Citizens Advice recently stated that it has helped more than “20,000 people with debts to their energy company, a 29 per cent increase compared to last year. In the same period, we’ve supported more than 55,000 people with referrals to food banks and charitable grants, an increase of more than one third.”
Ophelos, a debt resolution company which works with energy, financial services and buy now pay later firms, also recently exclaimed that it has seen demand for its services increase by “40-50 per cent” since the start of 2022.
“Particularly over the past two months, we have noticed more and more customers falling into debt,” said Ophelos Chief Executive, Amon Ghaiumy.
“What we’re seeing is sometimes quite harrowing,” Ghaiumy continued. “I don’t see the government propping up households unfortunately, so there will be suffering from increased energy price and other areas of inflation.”
Trust Cobra: Don’t Fall Behind with Your Bills
If you were to fall behind on your household bills, you expect a visit from us at Cobra if your debt is £1,000 or more. And, if you are a landlord or energy provider and require help pursuing an unpaid bill, then look no further than a debt recovery agency such as Cobra Financial Solutions.
With over 75 years’ worth of combined experience, and with years’ worth of knowledge of the energy sector, instructing the likes of our specialist energy team here at Cobra is one of the best things you can do to recover the money you’re owed.
Established over a decade ago, our specialist private debt recovery team are vastly experienced when it comes to working within and for the energy sectors. So, if you need a household debt recovering, and if you’re a small energy company or landlord, then instruct Cobra on email@example.com.