Third of Brits have skipped key payments this year

One in three people have missed payments on vital bills such as credit cards and loans in the year to date, new research has found.

14 per cent said that this was the first time that they have missed a key payment.

Amid the ongoing cost-of-living crisis and against a backdrop of high interest rates and inflation, a new survey commissioned by the Money and Pensions Service has revealed that millions of Brits are already in financial difficulty with their creditors.

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While two thirds of people said that they would speak to their creditor to discuss their inability to pay, one in seven said that they would do nothing.

Credit card repayments were the most common type of bill that went unpaid, followed by utilities, council tax or rates, and bank overdrafts or loans. One in 20 had missed a rent or mortgage payment.

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“People are struggling this year and as these results suggest, some household budgets are becoming severely stretched,” said Charlotte Jackson, head of guidance at the Money and Pensions Service.

“One in seven people currently wouldn’t take any action if they started to struggle and this increases their risk of becoming stuck in the trap of long-term problem debt.”

When asked how they planned to make ends meet, 66 per cent said that they would cut back on essentials, 40 per cent said they would speak to family and friends, and 23 per cent said they would take out more credit to meet the cost.

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