Rural Credit

This article reflects a highly vulnerable position, potentially fraught with real challenges once interest rates start to rise…..

Half of the UK population are financially vulnerable with one in six people unable to cope with a £50 increase in monthly bills, according to a survey of Britain’s personal finances by the City regulator.

The Financial Conduct Authority’s biggest ever survey of households found that 4.1 million people are already in serious financial difficulty, falling behind with bills and credit card payments, with 25- to 34-year-olds the most over-indebted.

The FCA’s Financial Lives survey of 13,000 consumers is an attempt by the regulator to assess how many individuals are facing financial harm – and it paints an alarming picture of growing debt and credit problems across the UK.

Its findings include:

• 50% of adults (25.6 million people) “display one or more characteristics that signal their potential vulnerability”.
• Just under 8 million are over-indebted.
• 5 million adults have been turned down for a financial product in the last two years.
• One in six (17%) would struggle if their monthly mortgage or rent increased by less than £50.
• 40% of the population have confidence in the UK financial services industry.
• About 12 million adults have received an unsolicited approach that may be a scam, and 100,000 have lost money.