Displaying items by tag: household debt

Data from the Bank of England released on 1 September show an increase in mortgage and household borrowing. StepChange debt charity says this may point to the financial pressures many households face, which will crystallise into serious debt problems when unemployment support and payment holidays end. Since May, StepChange has published a monthly breakdown of trends to understand how the pandemic is affecting household debt, and to focus on the best ways of helping people. In July it gave advice to 14,000 clients, but this number is artificially suppressed by government support mechanisms still in place. However, a notable feature in July is the trend toward greater unemployment worries. Not only has the proportion of unemployed clients increased, but searches about redundancy on the charity's website saw a massive 1,800% increase in July compared with June. StepChange said, ‘It’s absolutely vital that we see ongoing support to help people get through the next period, whether they are in employment or not, if we are to avoid entrenching problem debt as a long-term legacy of the pandemic.’