Barriers preventing people from seeking financial support remain
The cost-of-living crisis continues to strain household and personal finances, with over 12 million people having missed one or more payments in the last 12 months, according to new research from Bluestone Mortgages.
The number translates to nearly one in four UK adults, or 24%, missing payments, up from 18% in 2023. Almost two-thirds, or 64% of these individuals cited the cost-of-living crisis as the primary reason.
Utility bills topped the list of missed payments, with 10% of respondents missing one or more payments, followed closely by credit card payments at 9%. These figures increase significantly for individuals with adverse credit. Seven in 10 who missed a payment in the last year reported that it impacted their ability to access financial services.
Despite the prevalence of missed payments, Bluestone noted that significant barriers prevent people from seeking financial support.
Among those who missed a payment in the last 12 months, the primary obstacles to seeking help were not knowing where to start and feeling too embarrassed to ask for help (both 29%). Other barriers included embarrassment about the state of their finances (28%) and concerns about the impact on their credit score (20%).
“Missed payments are no longer isolated events and are becoming part and parcel of people’s everyday lives as the squeeze on household and personal finances continues to take its toll,” said Ryan Davies (pictured), strategy director at Bluestone Mortgages. “As a result, we expect to see a growing number of customers with adverse credit looking for financial support.
“The mortgage industry has a key role to play in supporting these customers, creating a safe space for them to talk about their financial situation without embarrassment while providing them with information about the different options available. Ultimately, it is our duty as an industry to signpost these customers to the help they need during these challenging times.”
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