The cost-of-living crisis
The cost-of-living crisis is impacting millions of people across the UK. Prices have increased across the board meaning everyday costs as well as energy bills, fuel costs and mortgages now feel unachievable. .
What is the cost-of-living crisis?
The cost-of-living crisis refers to the fall in disposable incomes. This is being caused by wage and benefit increases not keeping up with the rise in inflation.
One of the biggest concerns for many is the high energy prices. In early February, the government announced some measures to combat the high energy prices. In the following months further support schemes were rolled out to households to protect them from the rising costs.
The reality of the situation
With energy prices and groceries costs sky rocketing, it is ever likely more people will rely on their credit accounts and ‘buy now, pay later’ schemes to cover the essential everyday costs. Credit accounts are only a temporary fix, and whilst they will relieve any pressure in the immediate instance, they could cause more long-term stress. If consumers do not have the financial capacity to manage their repayments in full, we will be seeing more people fall into financial difficulty due to excess interest rates which in turn will lead to more debt.
Being in debt can be a scary situation to find yourself in. However, it is important you don’t ignore your debts and seek advice if you find yourself unable to make your repayments. If you’re worried about the repayment of a debt that has been passed to Dukes, contact a member of our friendly team today to discuss your concerns.
Despite the efforts that are being made to implement support schemes and grants, including the Household Support Fund and cost of living payment, this situation is not forecast to get any easier soon.
What can you do?
It is easy to feel like there is no way out of this crisis. However, there is free financial support available to you.
In February this year, we partnered with StepChange Debt charity. StepChange’s mission is to provide support and resources to anyone struggling with debt. If you are concerned about how you can keep your family warm during the winter, or keep up with your current debt repayments, contact them today.
Other organizations that provide free financial advice:
Debt Advice Foundation: https://www.debtadvicefoundation.org/
National Debt Line: https://nationaldebtline.org/
Citizens Advice Trust: https://www.citizensadvice.org.uk/debt-and-money/get-help-with-the-cost-of-living/