Number of families with problem debt up by more than a quarter since 2012, new report reveals

The number of households with problem debt has increased by 700,000 (28 per cent) since 2012, according to new TUC and UNISON-commissioned research published today (Tuesday).   The report, Britain in the Red, shows that in 2014 one in eight households (3.2 million) were over-indebted compared to one in ten (2.5 million) in 2012.   The report shows that young people, the self-employed and low-income families have been the hardest hit by the rise in problem debt. Problem debt is defined as having to spend 25 per cent or more of monthly gross income on unsecured debt repayments (credit card debts, loans and overdrafts) that are not mortgage or rent payments.   Britain in the Red also finds that half (1.6 million) of those with problem debt spend 40 per cent of their gross income on debt repayments that are not housing costs. Lower-income households account for the great majority (1.1 million) of this number.   The report reveals: In 2012 just 2 per cent of 18-34 year-olds with any form of unsecured borrowing were over-indebted, but by 2014 this had risen to 10 per cent. Credit card, personal and payday loans, overdrafts and store cards were the main factor behind the increase in problem debt not student loans. In 2012, 6 per cent of self-employed workers with credit commitments were in serious debt. But by 2014 this had nearly tripled to 17 per cent. The number of low-income families with problem debt shot up from 9 per cent in 2012 to 16 per cent in 2014. ...
Source: UNISON Health care news - Category: UK Health Authors: Tags: News Press release Debt Finance tax credits cut 2015 TUC Source Type: news