Problem debts: Households in poverty face a difficult 2018

Responding to the IFS report on problem debt and low-income households, Helen Barnard, Head of Analysis at the independent Joseph Rowntree Foundation, said:

“More than one in five people on low incomes have problem debt compared with just one in 20 of those at the top of the income scale. This is putting huge pressure on household finances: on average, those with problem debt in the bottom fifth spend £457 a month on paying back their debts, out of an income of £1,012.

“Low income household are facing a difficult 2018, with rising prices, frozen benefits and a wage squeeze all putting further pressure on household incomes. The Government, regulators and lenders need to not only look at increasing access to affordable credit, but also at the financial pressures that can lead families to take on debt in order to get by."

You can read the full report on the IFS website.