Britain’s growing debt trap
Across the UK debts are spiralling out of control, with more and more people and families getting caught in a debt trap.
Personal debt has reached it’s highest ever levels, a staggering £217 billion.
Nearly 9 million people are now ‘severely indebted’, spending more than a quarter of their incomes on debt repayments, and the poorest people are being hardest hit. Just under half of these households have incomes of less than £15,000 per year.
Low wages, insecure work, welfare cuts and rip-off lending lay behind the debt trap. Growing numbers of people simply can’t make ends meet, and are being forced to borrow from rip-off, irresponsible lenders just to cover basic needs.
The debt trap is driving mental health problems, homelessness and family breakdown, and sinking poor families and communities deeper into poverty.
We urgently need the government to take action to end spiralling debts and the growing debt trap. That’s why we’re calling on the government to:
- End rip-off lending by capping interest and charges, for loans, credit cards, overdrafts and doorstep lending,
- Start a government inquiry into why so little action has been take and put pressure on the Financial Conduct Authority to act.