Millions in financial hot water as battle against rising prices takes its toll

FCA’s Financial Lives survey sneak peek: Millions more in financial hot water as daily battle against rising prices takes its toll

New data released today by the Financial Conduct Authority revealed the number of people struggling to meet bills and credit repayments has risen by 3.1m since May 2022 (10.9m, compared to 7.8m in May 2022).

Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Millions more people have found themselves in financial hot water within the space of a year as the daily battle against rising prices and borrowing costs takes its toll.

“It isn’t easy to stay out of the red for many Britons in the prevailing economic conditions, with the cost of borrowing on the up and inflation running rampant. Mortgage repayment obligations, which is the largest source of debt for many households, has gone through the roof thanks to successive hikes to interest rates, so too have rents, while increases to energy and food bills have been difficult to digest at a time when inflation has taken a big bite out of our purchasing power.

“Many Britons have gone through different financial phases in a short period of time at when the unprecedented has seemingly become the norm – forcing them to pivot several times and some stark decisions concerning their budget to maintain financial resilience. Many of those who were fortunate enough to become accidental savers during the pandemic have seen their bumper savings depleted in the face of red-hot inflation.

“It remains important to pay extra attention to your financial wellbeing and consider what protective steps you can take now to avoid money worries later. Living under a cloud of money woes can leave anyone feeling the strain, and make it harder to find solutions to money problems you may find yourself in.

“Those struggling to keep on top of their finances needn’t suffer in silence – there is support out there. If you’re behind on your bills, contact your creditors to ask for support. It is worth consulting a debt advice charity such as StepChange or Turn2Us and they will go through all of your options.”