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The cities where tens of thousands have problem debts | The cities where tens of thousands have problem debts |
(about 5 hours later) | |
In at least 10 areas of the UK, more than a fifth of the residents are missing bill payments repeatedly, according to research. | |
New figures from the Money Advice Service suggest inner-city areas are the worst affected. | New figures from the Money Advice Service suggest inner-city areas are the worst affected. |
In Newham, in the East End of London, and Sandwell in the West Midlands, at least 22% of residents have problem debts. | |
In Manchester, more than 90,000 adults are struggling with repayments. | |
The total number of people in such difficulties has risen by about 100,000 in the past six months to 8.3 million, according to the Money Advice Service. | The total number of people in such difficulties has risen by about 100,000 in the past six months to 8.3 million, according to the Money Advice Service. |
However, that is fewer than the 8.8 million who had problem debts in 2013. | However, that is fewer than the 8.8 million who had problem debts in 2013. |
Over-indebted individuals are defined as those who find meeting monthly bills a heavy burden, or those who miss at least three bill payments in a six-month period. | Over-indebted individuals are defined as those who find meeting monthly bills a heavy burden, or those who miss at least three bill payments in a six-month period. |
Areas where more than 20% have problem debt | Areas where more than 20% have problem debt |
Newham, East London: 22.7% | Newham, East London: 22.7% |
Tower Hamlets, East London: 22.7% | Tower Hamlets, East London: 22.7% |
Sandwell, West Midlands: 22.1% | Sandwell, West Midlands: 22.1% |
Nottingham: 21.9% | Nottingham: 21.9% |
Barking and Dagenham, East London: 21.8% | Barking and Dagenham, East London: 21.8% |
Blaenau Gwent, South Wales: 21.6% | Blaenau Gwent, South Wales: 21.6% |
Hull: 21.5% | Hull: 21.5% |
Manchester: 21.5% | Manchester: 21.5% |
Leicester: 21% | Leicester: 21% |
Hackney: 20.9% | Hackney: 20.9% |
Source: Money Advice Service | Source: Money Advice Service |
Government action | Government action |
By contrast, 9.7% of the population in East Dorset has difficulty meeting bills. Residents of Surrey and Buckinghamshire also tend to have fewer difficulties. | By contrast, 9.7% of the population in East Dorset has difficulty meeting bills. Residents of Surrey and Buckinghamshire also tend to have fewer difficulties. |
Andrew Bailey, the chief executive of the Financial Conduct Authority (FCA), told the Guardian that debt was a particular issue for those with erratic incomes, such as workers in the gig economy. | Andrew Bailey, the chief executive of the Financial Conduct Authority (FCA), told the Guardian that debt was a particular issue for those with erratic incomes, such as workers in the gig economy. |
"Credit is a means of smoothing (incomes), but the question is how do you structure it in a sustainable fashion? | "Credit is a means of smoothing (incomes), but the question is how do you structure it in a sustainable fashion? |
"It needs government involvement," he said. | "It needs government involvement," he said. |
The latest figures from the Bank of England indicate that the growth in consumer credit is actually slowing. | The latest figures from the Bank of England indicate that the growth in consumer credit is actually slowing. |
In July, annual growth fell to 9.8%, the slowest pace in over a year. It peaked at a rate of 10.8% in November last year. | In July, annual growth fell to 9.8%, the slowest pace in over a year. It peaked at a rate of 10.8% in November last year. |
However, the squeeze on living standards induced by high inflation and low wage growth could make it harder for many people to repay their debts. | However, the squeeze on living standards induced by high inflation and low wage growth could make it harder for many people to repay their debts. |
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