8 million people need debt advice and another 12 million are living on the edge

Using its survey of 22,519 adults, conducted in July-September 2023, MaPS has calculated that one in seven people (15%, 8.1 million) require expert advice to deal with the money they owe.

People in this situation have debts that could seriously affect their lives, such as mortgage, rent, council tax and utility arrears. Many will have seen creditors start enforcement proceedings against them, such as contact from bailiffs, legal action or pre-payment tariffs for electricity and gas.

The research also shows that another 12.6m people (one in four adults, 24%) are now at risk financially, meaning they’re struggling to keep up with bills and borrowing commitments, using high-cost credit or unable to afford food or essentials.

Combined, this means over a third of the UK population (39%) either need debt advice or are at risk of needing it soon.

Among the 8.1 million who already need it, people are more likely to be young, lower earners and in temporary jobs.

More than half (55%) are 18-34 years old, despite that age group only making up 27% of the population. Three quarters (73%) earn less than £30,000 a year (vs. 49% of the population), while 27% work in temporary jobs like Fixed Term or Zero Hours contracts (vs. 13% of the population).

MaPS says that debt advice can be “truly life-changing", but the survey also reveals that less than half (44%) of those who need it had taken it.

Of those who had, a quarter (26%) said they still waited more than 12 months between starting to struggle and finally seeking help. One in eight (12%) waited over three years.

Fear, embarrassment and being unsure where or how to access it, are all barriers to people getting the help they need, says MaPS, while others become overwhelmed by their situation when they start to think about how to deal with what they owe.

In reality however, people will remain in charge of their own decisions if they get advice. They won’t be judged and contacting a debt advice organisation to find out about their options won’t affect their credit rating.

As a result, MaPS is urging them to follow the path that thousands have already taken and go online to find free debt advice.

To enable this, the organisation offers a free online debt advice locator toolOpens in a new window on MoneyHelper, which enables people to find the help they need either from national or local organisations. Debt advice services are available online, by phone or face-to-face.

Anna Hall, Head of Debt Operations at the Money and Pensions Service, said:

“These figures show the chasm between how many people urgently need debt advice and the number actually taking it. This means millions are currently battling on alone without the help they so desperately need.

“Debt problems can have a corrosive effect on someone’s relationships, self-confidence and mental health, and every expense can ratchet up the anxiety. It can eventually lead to the disconnection of utilities, legal action and even homelessness.

“If you’re really struggling, MoneyHelper will help you find free debt advice. You won’t be judged and you could join the thousands before you who’ve turned things around.

“Many people wish they’d acted faster, but no one ever says they got debt advice too soon.”

– ENDS –

• The Debt Need Survey is carried out by the Money and Pensions Service. Fieldwork was conducted between 19/07/23 and 25/09/23 and it is nationally representative.
• The debt advice locator toolOpens in a new window is available via the MoneyHelper website.
• According to the ONS, there are approximately 53.2 million people aged 18 or over in the UK.