This report suggests that urgent action is needed to stop the UK sleep walking into a major personal debt crisis. It concludes that an economic recovery will not by itself reduce the risk of problem debt. Personal indebtedness is likely to carry on increasing, with greater levels of unmanageable debt among both low and middle income households.
The report shows that on current trends it will take longer to pay off the debts incurred in youth. By 2025 there will be many more single and older people trapped in problem debt. To mitigate the risks to tomorrow’s borrowers the report calls on government to take immediate action, including a national government-backed campaign to make people more aware of the risks of taking on high cost credit and offer better incentives to save.