Seven million adults reliant on credit pay their bills

Based on research from Creditspring, it also found that 25% of UK adults are forced to dip into their savings each month to make ends meet. This is compounded by the fact that the cost-of-living crisis has depleted many households’ financial cushion – with 18% saying they’ll need a loan once their savings run out while a further 21% don’t have any savings to fall back on at all.   

Additionally, the research found that three in ten people are terrified for their financial future, while a third feel stuck believing there’s nothing they can do to improve their financial situation. This goes alongside the 38% of people who say their financial future is unpredictable and they’re uncertain about their future position in the next six months.  

Reflecting on this, Creditspring’s co-founder and chief executive Neil Kadagathur said: “Although last year was tough, millions of people are in an even worse situation this time after another 12 months of struggling with rising costs and increasing bills. For many, it is a question of not just eat or heat – but how to ensure they can do either.   

“As we approach another winter of high energy costs, many households have nothing left to fall back on and are hugely concerned about how they will survive the next few months.  

“There needs to be more support for vulnerable people – whilst government support packages would be a huge help the lending industry must also be much more transparent to ensure that people are aware of the true cost of borrowing.  

“By providing more responsible credit products without hidden costs that encourage them to take on extortionate debts, lenders can protect vulnerable borrowers struggling to keep their head above water.” 

Personal finance and consumer rights expert Martyn James added: “This deeply troubling research lays bare the reality of the cost-of-living crisis for millions of people across the UK who are just trying to get by.  

“People work hard to build up their savings – and they should not have to use them to cover basic necessities like energy bills. I’m especially concerned about the impact of a cold winter and unaffordable bills on the huge numbers of people who don’t have any safety net.  

“I’m already hearing horror stories from people who are terrified of putting the heating on. These people include those who may be more vulnerable, plus countless others who are experiencing very real financial difficulties.  

“This problem is not going away, so we need decisive government action and long-term planning to help support those most in need. Failing to do so is a false economy as it’s more expensive to help people who can’t pay their basic bills long-term.

“But the impact on society as a whole is much more devastating.”