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The Rest Is Money

The Debt Paradox: Britain’s Hidden Credit Crisis

5/3/202643 min

If household debt as a percentage of GDP is at its lowest since 2002, why are debt charities seeing record levels of demand? Is this a temporary problem because of the cost of living crisis or about much bigger structural problems in the UK economy? Plus, what is ‘co-erced debt’ and why is it a growing problem?

Steph talks to Vikki Brownridge the CEO of the debt advisory charity StepChange about what’s really going on for the increasing number of people struggling with money. They discuss the challenges of the ‘working poor’ and whether policy changes li...

Clips

Energy Simply Not Affordable
Threats Of Prison Backfire
What Is Coerced Debt?
Debt Has Shifted To Bills
Near Saturation Point Warning
Asking For Help Won’t Hurt Score
Push For Social Tariffs
Working People Seeking Debt Help
Cost Of Living Isn’t Over
Eight Million Not Getting Help

Transcript preview

First 90 seconds

  1. Vikki Brownridge· Guest0:01

    The second most [cash register sound] common reason for people reaching out for help is just the sheer cost of living.

  2. Steph McGovern· Host0:06

    That's really scary, isn't it? What about energy then? Do you think enough's being done by the government to help support people on energy?

  3. Vikki Brownridge· Guest0:13

    The reality is that the energies are not affordable for many people.

  4. Steph McGovern· Host0:17

    Is the banking system part of the problem?

  5. Vikki Brownridge· Guest0:18

    Mm.

  6. Steph McGovern· Host0:18

    And we've obviously had the lifting of the, the two child's limit.

  7. Vikki Brownridge· Guest0:22

    Yeah.

  8. Steph McGovern· Host0:22

    Do you think that's gonna make a difference?

  9. Vikki Brownridge· Guest0:24

    [cash register sound] We're not far off saturation point, so if the demand continues, it's gonna be challenging for us and the sector as a whole actually to fulfill.

  10. Steph McGovern· Host0:33

    [upbeat music] Hello, and welcome to The Rest Is Money with me, Steph McGovern. Now, we love throwing big stats at you on this show, and recently one of them that we gave you was about household debt. So as things stand, household debt as a percentage of GDP is at its lowest since 2002. In other words, people are not in as much personal debt, which on the face of it, and you know we spent an episode talking to Karen Ward about this, that sounds like good news, but it's not the whole story because what those figures don't tell you is what's really going on with people who are in arrears and the problem debt that is masked. So with me on the show today, we

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