Citizens Advice has written a blog about the changes we have seen nationally in the type of debt problems people ask us about.
Traditionally and historically consumer debt has been the highest category – with credit and store card debts top of the list. This has changed in the last couple of years and ‘domestic’ debts not top the list – this means that more people ask for help when they owe money to gas and electricity suppliers, or have Council Tax debts or Magistrate Court fines etc. or they owe money on their rent or mortgage.
Why does this matter/ what does this mean?
This shows that poverty is increasing as the remedies for these debts can be very harsh. People can lose their homes or their liberty (be put in prison) for some of these debts. If money is owed on a store card, you might go bankrupt – which is a distressing event, but pales into insignificance compared to losing your home.