2.3 Million UK Households Missed Payments in January

As many as 2.3 million households in the UK missed payments they should have been making in January because their finances were under so much pressure.

According to the consumer watchdog Which?, the cost of living crisis is putting more and more people in a position whereby they simply cannot afford to cover their essential outgoings each month.

For many people that means not paying rent, missing mortgage payments or leaving debt demands unpaid entirely.

Worryingly, Which?’s data suggests that the number of households defaulting on debts or missing payments increased from 1.9 million to 2.3 million within a single month from December 2022 to January this year.

January tends to be the peak month for people defaulting on debts and missing monthly payments but there are nonetheless growing concerns about the financial circumstances so many British households are now having to deal with.

Part of the picture - as outlined by Which? - is that inflationary pressures are generally impacting people with the lowest incomes more than any other demographic.

In fact, the watchdog has said that the gap between how much low-income households are being impacted by inflation compared to their better-off counterparts is growing in ways that are clearly exacerbating the UK’s cost of living crisis.

Rocio Cocha, Which?’s director of policy and advocacy, commented: “With 2.3 million UK households missing payments in January and those on the lowest incomes being hit hardest, consumers will need more support than ever in 2023.

“As the cost of living crisis continues to bite into household finances, we are calling on businesses in essential sectors – like food, energy and broadband providers – to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges.”

Which? has also made clear that dealing with worsening debt issues and having to cut back on essential outgoings is causing a massive amount of stress and concern to people right across the UK.

If you live anywhere in Scotland and you are worried about your personal debt situation then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.