Millions of 'financially fragile' Britons mired in cost of living crisis

A study by accounting firm PwC lays bare the struggles of households at the turn of the year as inflation runs wild, costs rates are accelerating and real wages are eroding Households are grappling with rising bills in the cost of living crisis (
Image: Getty Images/iStockphoto

Nearly nine million adults are 'financially fragile' and at risk of being overwhelmed in the cost of living crisis, a report has warned.

Data from accounting giant PwC and credit app TotallyMoney show record levels of unsecured debt and rising interest rates are straining household budgets.

They found that 8.9 million adults were showing signs that their finances were on the brink, meaning they might need to use their overdraft to cover day-to-day expenses and basic needs, like grocery shopping.

They may also struggle to repay their loans next year.

The study estimates that unsecured debt, such as personal loans, amounts to more than £400 billion, equivalent to a record £16,200 for every UK household.
Isabelle Jenkins, Head of Financial Services at PwC UK, said: "The results are surprising and it's clear that for UK households struggling with post-Christmas debt, the outlook may look difficult.

"For most borrowers, credit serves an important function, smoothing income and expenses, which, if affordable, can be beneficial.

“However, unaffordable lending and borrowing can cause real harm to individuals and society, and vulnerable consumers can be disproportionately affected.”

Families could face more suffering in 2023 (
Picture:
Getty Images)
The report found that in the past year alone, household unsecured debt has increased by more than £1,000, an annual growth rate of 7.2% to reach £16,200.< /p>
This grew from nearly £10,000 at the end of 2016.

Simon Westcott, Head of Strategy and Financial Services at PwC UK, said: "The rising level of unsecured debt and the vulnerability of UK households to rising interest rates could leave consumers feeling overstretched. ."

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Politics Dec 30, 2022 0 60 Add to Reading List

Millions of 'financially fragile' Britons mired in cost of living crisis

A study by accounting firm PwC lays bare the struggles of households at the turn of the year as inflation runs wild, costs rates are accelerating and real wages are eroding Households are struggling with rising bills in the cost-life crisis Households are grappling with rising bills in the cost of living crisis (

Image: Getty Images/iStockphoto

Nearly nine million adults are 'financially fragile' and at risk of being overwhelmed in the cost of living crisis, a report has warned.

Data from accounting giant PwC and credit app TotallyMoney show record levels of unsecured debt and rising interest rates are straining household budgets.

They found that 8.9 million adults were showing signs that their finances were on the brink, meaning they might need to use their overdraft to cover day-to-day expenses and basic needs, like grocery shopping.

They may also struggle to repay their loans next year.

The study estimates that unsecured debt, such as personal loans, amounts to more than £400 billion, equivalent to a record £16,200 for every UK household.

Isabelle Jenkins, Head of Financial Services at PwC UK, said: "The results are surprising and it's clear that for UK households struggling with post-Christmas debt, the outlook may look difficult.

"For most borrowers, credit serves an important function, smoothing income and expenses, which, if affordable, can be beneficial.

“However, unaffordable lending and borrowing can cause real harm to individuals and society, and vulnerable consumers can be disproportionately affected.”

Families could face more suffering in 2023 (

Picture:

Getty Images)

The report found that in the past year alone, household unsecured debt has increased by more than £1,000, an annual growth rate of 7.2% to reach £16,200.< /p>

This grew from nearly £10,000 at the end of 2016.

Simon Westcott, Head of Strategy and Financial Services at PwC UK, said: "The rising level of unsecured debt and the vulnerability of UK households to rising interest rates could leave consumers feeling overstretched. ."

* Follow Mirror Politics on,et.