Whilst the government announces plans to wind down its controversial Money Advice Service (MAS), statistics show that the debt problem in the UK is soaring. At a time when it seems financial advice is needed more than ever, it’s a worrying thought that such vital services are being abolished.
MAS has released shocking statistics about debt in Britain today, yet, ironically, one of the main reasons that this financial service is ending, is due to its own overspending and mismanagement of finances. Still, the demise of the MAS doesn’t mean there is any less of a need for advice on aspects such as debt management, IVA, and financial budgeting.
According to The Guardian the MAS has revealed that more than eight million UK adults have a problem with debt. This translates as one in six people in Britain, with single parents, young adults, families with children and renters being most at risk.
The worst-affected areas for debt include Sandwell, Blaenau Gwent and Merthyr Tydfil, where 25 per cent of adult residents are considered over-debted.
Statistics released from MAS also show that debt is linked to having children, with an increased risk of 50 per cent. The larger the family, the more likely the debt problem, with 26 per cent of parents with three or more children defined as being over-debted. Money worries are also a concern for single parents, with around a million single parents in the UK being affected by debt. A quarter of young people aged 25-34 years old also experience issues with debt, and those who rent property have double the risk of debt compared to homeowners.
Despite soaring debt, it appears Britons are still happy to keep spending. According to The Telegraph households are expected to spend £58 billion more than they earn this year, rising to £68 billion by the end of the decade.
Despite the forthcoming demise of the MAS, financial debt advice is still available from firms like Carrington Dean group limited, to tackle this mounting problem.
Whilst debt advice is effective at getting to grips with the issue, the worrying trend is trying to get people to seek help in the first place. Only 20 per cent of people with debt currently ask for advice and guidance to manage their money problems.