Debt worries emerge from break-ups

From BBC - March 14, 2018

Financial shocks such as divorce and redundancy are leading people into debt crises, a charity has said.

The under-25s are prone to problems caused by poor budgeting, a review by debt helpline StepChange found.

But for most age groups, a lack of money resulting from an income shock - rather than poor budgeting - has led to many slipping dangerously into the red.

A large proportion of single parents and tenants have sought help from the charity, it said.

"It can be too easy to look at statistics and fail to see the anxious human face of problem debt," said Phil Andrew, StepChange's chief executive.

"Our clients show that the debt problem is far from solved. With the prospect of higher interest rates ahead, it would be a mistake to take too much reassurance from the gradual improvement in the wider economy."

The figures, published in a review of the charity's work in 2017, follow separate figures that revealed a rise in personal insolvencies for the second consecutive year.

In total, 99,196 individuals were declared insolvent in England and Wales, up 9.4% from 90,657 in 2016.

Priority debts


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