Christians Against Poverty say the UK is facing a personal debt crisis as its latest YouGov polling reveals 7.9 million people are using credit to cope with rising costs.
UK debt and budgeting help charity, Christians Against Poverty (CAP) say urgent awareness and extra funding for free debt help is needed as millions are being forced to borrow during the cost of living crisis.
CAP’s latest YouGov polling shows:
7.9 million people have used credit cards, overdrafts or loans to cope with rising costs.
4.2 million have been forced to borrow from friends and family, 13% of households with children had to do so.
Over a quarter of the UK adult population (26%, 13.7 million) have had to use their savings due to the cost of living crisis.
65% (28.9 million) of people in England expect the cost of bills and essentials to put a significant burden on their finances in the next 6 months. 67% in Scotland, 69% of those who responded in Wales, 58% of those who responded in Northern Ireland.
Scotland
932,000 people in Scotland have used credit cards, overdrafts or loans to cope with rising costs.
222,000 have had to borrow from friends and family.
1.4 million forced to use their savings due to the cost of living crisis.
222,000 have missed payments on household bills.
(Sample size — 182 respondents)
—
North West
800,000 people in the North West have used credit cards, overdrafts or loans to cope with rising costs.
700,000 have had to borrow from friends and family.
1.6 million forced to use their savings due to the cost of living crisis.
200,000 have missed payments on household bills.
(Sample size — 203 respondents)
—
Yorkshire and the Humber
700,000 people in Yorkshire and the Humber have used credit cards, overdrafts or loans to cope with rising costs.
400,000 have had to borrow from friends and family.
1.4 million forced to use their savings due to the cost of living crisis.
200,000 have missed payments on household bills.
(Sample size — 197 respondents)
—
East Midlands
700,000 people in the East Midlands have used credit cards, overdrafts or loans to cope with rising costs.
300,000 have had to borrow from friends and family.
900,000 forced to use their savings due to the cost of living crisis.
200,000 have missed payments on household bills.
(Sample size — 167 respondents)
—
West Midlands
600,000 people in the West Midlands have used credit cards, overdrafts or loans to cope with rising costs.
200,000 have had to borrow from friends and family.
1 million forced to use their savings due to the cost of living crisis.
200,000 have missed payments on household bills.
(Sample size — 180 respondents)
—
East of England
800,000 people in the East of England have used credit cards, overdrafts or loans to cope with rising costs.
300,000 have had to borrow from friends and family.
1.3 million forced to use their savings due to the cost of living crisis.
200,000 have missed payments on household bills.
(Sample size — 188 respondents)
—
London
1 million people in London have used credit cards, overdrafts or loans to cope with rising costs.
600,000 have had to borrow from friends and family.
1.5 million forced to use their savings due to the cost of living crisis.
400,000 have missed payments on household bills.
(Sample size — 250 respondents)
—
South East
1 million people in the South East have used credit cards, overdrafts or loans to cope with rising costs.
400,000 have had to borrow from friends and family.
1.9 million forced to use their savings due to the cost of living crisis.
200,000 have missed payments on household bills.
(Sample size — 262 respondents)
—
South West
800,000 people in the South West have used credit cards, overdrafts or loans to cope with rising costs.
500,000 have had to borrow from friends and family.
1.2 million forced to use their savings due to the cost of living crisis.
100,000 have missed payments on household bills.
(Sample size — 217 respondents)
—
North East*
11% of people who responded in the North East have used credit cards, overdrafts or loans to cope with rising costs.
7% have had to borrow from friends and family.
24% forced to use their savings due to the cost of living crisis.
3% have missed payments on household bills.
* (Sample size — 93 respondents. Due to the North East sample size being below 100 it isn’t possible to provide a population breakdown.)
—
Northern Ireland*
15% of people who responded in Northern Ireland have used credit cards, overdrafts or loans to cope with rising costs.
5% have had to borrow from friends and family.
23% forced to use their savings due to the cost of living crisis.
3% have missed payments on household bills.
* (Sample size — 60 respondents. Due to the Northern Ireland sample size being below 100 it isn’t possible to provide a population breakdown.)
—
Wales*
13% of people who responded in Northern Ireland have used credit cards, overdrafts or loans to cope with rising costs.
7% have had to borrow from friends and family.
25% forced to use their savings due to the cost of living crisis.
2% have missed payments on household bills.
* (Sample size — 99 respondents. Due to the Wales sample size being below 100 it isn’t possible to provide a population breakdown.)
“I ended up using credit cards as I had no other options”
Former CAP client, and mum of one, Karen, found herself facing mounting debts following the breakdown of her marriage. She said:
No-one can understand the pressure and heartbreak when you simply don’t have enough money to pay for essentials. I needed to provide food, clothes and heating for me and my son and ended up using credit cards, as I had no other options
Although I am now out of debt and in work, I know first hand that an unexpected change in circumstances can send people into a financial crisis. This has been made worse by rising prices and the cost of living crisis, so that even people like me who have managed our way out of debt, face the pressure to use credit as costs spiral again
Many people still don’t know free debt help exists, we need to change that!
CAP’s Head of Fundraising, Alex Jones, said:
“This new data is really concerning. Millions of people in our communities; our families, friends and neighbours, are being impacted in the long term by constantly rising costs.
“Last month at Christians Against Poverty we saw requests for emergency energy top ups double when compared to March 2022. We are seeing this cost of living crisis turn into a personal debt and poverty crisis. Millions of people are being pulled into deeper poverty, forced to borrow just to cover the basics they need to live, like food and energy.
“Free debt help and budgeting support can give people a fresh start and restore hope and the promise of a brighter future. But many still don’t even know free debt help exists. Over half of the people we help say before finding us they didn’t know where to go for help.
“CAP is continuing to help thousands of people every year to break free from the grips of poverty with our emergency food and energy support for those in crisis, free debt help, budgeting courses and job clubs.
“We are asking politicians & policy makers — energy providers, utilities companies & financial services — local agencies and individuals to come together to fund local debt help and raise awareness of the support available.
“We can fight poverty but we need to collectively raise more awareness so people know where to seek free help and to raise the funds needed to pay for this life changing work.”
Play your part
Please support CAP’s urgent fundraising appeal at: capuk.org/support
Christians Against Poverty (CAP) is a UK charity determined to reduce UK poverty by delivering free debt help, money management education, job clubs and life skills groups.
We work hand-in-hand with more than 700 local churches across the UK, with our head office based in Bradford. Take a tour at capuk.org/about-us.
Contact: Christians Against Poverty PR team: [email protected], 01274 760801
CAP commissioned a YouGov Poll of a nationally representative sample of 2,098 people in February 2023. 84% of respondents lived in England, 5% in Wales, 8% in Scotland, 3% in Northern Ireland. Population figures have been calculated using ONS mid-year UK adult population estimates for 2020 of 52,890,044.
All calculations related to population have been carried out by Christians Against Poverty, using YouGov and ONS data.
