Almost a quarter of adults “couldn’t afford an unexpected £200 bill”
One in four adults say they can’t afford an unexpected £200 note, a survey has found.
A survey conducted in July found that 23% of people could not afford the unexpected £200 cost.
The research was commissioned by Debt and Budgeting Help charity Christians Against Poverty (CAP).
About 28% of adults said increases in the cost of living made them feel financially insecure.
We are supporting more and more people who have had to borrow money just to pay for essentials such as food, bills and energy
The same proportion (28%) of adults surveyed across the UK said keeping up with bills and credit obligations was a huge burden for them, and 9% now have debts they don’t know how to manage should pay back.
Gareth McNab, director of external affairs at CAP, said: “Millions of households across the UK are currently facing a devastating debt crisis.
“At Christians Against Poverty we are supporting more and more people who have had to borrow money just to pay for essentials such as food, bills and energy.
“For many, income is simply so low that a financial shock such as a car problem or a broken boiler can lead to a spiral of debt.”
He added: “We all deserve an income that provides us with at least the basic necessities, but for many, inadequate social security and low wages are currently leading to more debt and poverty and all the worries and challenges that come with it.”
CAP said one of its clients struggled with debt after a difficult pregnancy, leaving her unable to return to work.
An unexpected car breakdown also increased the financial burden on her family.
We were just about to break up, but we had to take out a credit card because the car exploded and we had to buy another car
She said: “We were just about to break up but we had to take out a credit card because the car exploded and we had to buy another car.”
“It’s been a very difficult time for all of us and it hasn’t been easy being stuck on one salary with a new baby and a nine-year-old son.”
She received help from CAP and is now debt-free after successfully using a repayment plan and budgeting, the charity said.
CAP is calling for a nationwide strategy to ensure every person and household across the UK receives all the social security benefits to which they and their families are entitled.
She said she also wanted to see clear manifesto commitments to ending poverty by ensuring incomes were “livable” by reviewing social security rates and wages against minimum standards.
Even when deducting debts from benefits, it is important to ensure that there is still enough left to live on, the charity said.
More than 2,000 people across the UK were surveyed for the study by YouGov.
A government spokesman said: “We know people are struggling, which is why we are pushing down inflation and providing record levels of financial support averaging £3,300 per household.”
“In addition, we increased benefits – including Universal Credit – by 10.1%, increased the National Living Wage and expanded the Household Support Fund to help families with food, energy and other vital costs.
“We have invested a record £90 million to support free debt advice in England and our Breathing Space program gives people experiencing financial difficulties the opportunity to receive debt advice, without pressure from creditors or mounting debts.”
https://www.standard.co.uk/business/money/nearly-a-quarter-of-adults-could-not-afford-an-unexpected-bill-of-ps200-b1104831.html Almost a quarter of adults “couldn’t afford an unexpected £200 bill”
