Inflation could push over a quarter of Brits into debt

A new report has revealed that the inevitable increase in inflation could only push UK families into debt. Subscription loan provider Creditspring reveals over a quarter of Brits with dependents have said they will need to borrow to survive the winter. The company has seen the number of people seeking affordable credit double since July.
Almost half of the people with children under 18 said they couldn’t survive another lockdown, compared to 16 per cent of adults without children. CEO of Creditspring, Neil Kadagathur said, “Families are feeling the brunt of rising costs during the most expensive time of the year and are becoming increasingly worried how they’re going to survive what is shaping up to be the toughest period since the financial crisis.”
He added, “Inflation and living costs are soaring at the exact moment when the nation needs to tighten the purse strings. The approaching Christmas period is only going to exacerbate the situation and could be the tipping point that pushes households into debt.”
Their research showed almost 22 per cent of families with children under 18 have been forced to turn to high-cost loans after being rejected by mainstream lenders. 20 per cent of these borrowers have struggled with the expensive repayments. Around 40 per cent of families with children under 18 said they want more support from banks when making financial decisions and managing money, more than twice as many as adults without children.
Meanwhile, recent figures from the Centre for Economics and Business Research indicate that the average family could be £1,700 worse off next year as UK inflation has now hit 5.1 per cent, the highest rate in a decade. Kadagathur said banks and financial providers need to ease the pressure on families and increase access to affordable credit.
He said, “There are still too many families forced to turn to high-cost lenders who take advantage of their perilous financial position and offer credit with extortionate repayment terms.”