Key findings

How much debt were respondents in?

• Respondents owed an average of £3,250 on credit or store cards.

In the previous 12 months:

• Respondents had borrowed an average of £3,257.
• 70 per cent of people had been unable to pay a bill at the final reminder.
• 50 per cent reported missing two or more consecutive payments with at least one bill.
• 78 per cent of those with problem debt had been threatened with legal or court action.
• 51 per cent of those with problem debt had been contacted by bailiffs or debt collectors.

Living standards of those with problem debt*

• Almost 50 per cent were living on a weekly household income of £200 or less, defined by the Government as 'living on the poverty line'.
• 56 per cent had gone without food due to a shortage of money.
• 51 per cent had gone without heating.
• 92 per cent reported not being able to socialise.
• 87 per cent needed to borrow money or use a credit card to pay for food or other everyday spending.
• 71 per cent ran out of money every week or most weeks.

Creditors' responses to those with problem debt

• 63 per cent did not tell creditors about their mental health problem because they didn't think they would understand.
• 47 per cent chose not to tell because they thought creditors would not believe them.

Of the 37 per cent who did tell creditors:

• 83 per cent had been harassed about debt repayments despite informing the organisation of their mental health problems.
• 79 per cent felt their mental health problems were not taken into account when a decision was made about their financial difficulties.
• 74 per cent felt they were treated unsympathetically and insensitively by staff after telling the organisation.

* In this report, we define 'problem debt' as occurring when a person has been two or more consecutive payments behind with a bill in the last 12 months.