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.