“Citizens Advice warns of growing household debt crisis and “wild west” of debt advice”

Citizens Advice has warned of a mounting “debt time-bomb” and said that more and more households are facing a “wild west” when seeking help. The charity said it is helping increasing numbers of people who do not have sufficient income to cover their essential expenses. According to the Director of Policy, Matt Upton, 51% of those seeking assistance with debt issues have negative budgets, up from 36% before the pandemic. Upton warns that, if this trend is reflected across the population, a “debt crisis” will follow. Citizens Advice has also noted that clients’ unsecured credit use is at its highest level in four years. Upton believes that changes are needed, including bringing third-party debt collectors under a proper statutory regulatory framework, to ensure that people are not actively working against those who are struggling to pay the bills.