StepChange's new infographic explores why consumer credit can lead to poor outcomes for people struggling with living costs and what government, regulators and industry can do to help.
To accompany the infographic, our solutions blog sets out key priorities to prevent harmful financial difficulties journeys in consumer credit.
The infographic shows how:
1. Millions on the edge use credit to keep up with living costs
9 million adults in the UK (17%) struggling to keep up with bills and credit repayments have recently borrowed to pay for essentials
2. Becoming dependent on credit to cope often makes the situation worse
Rising repayments as debt increases force those already struggling to further cut back.
3. A vicious cycle prevents people in difficulty from accessing support
Over half of those struggling with credit repayments have been in difficulty for over six months.
Unaffordable debt causes real harm: 82% of those struggling with credit say debt negatively affects their health, while 50% say debt negatively affects relationships with their partner, family or friends.
Poor outcomes in consumer credit for those struggling with the cost of living can be avoided.
We want the FCA, government and industry to prioritise preventing harm caused by financial difficulties journeys.
Download the infographic