12 million people in Britain are likely to struggle with bills and loan repayments as the COVID-19 pandemic continues to wreak economic havoc, a Financial Conduct Authority survey has revealed
31% of adults have experienced a decrease in household income, with Black, Asian and Minority Ethnic (BAME) and young people more likely to be affected.
36% of respondents who already had low financial resilience, and had a mortgage, said they are likely to fall behind on mortgage payments; 36% of those with loans or credit cards are worried about repayments on these; and 42% of renters are worried about falling behind on rent payments.
Sheldon Mills, Interim Executive Director of Strategy and Competition, said:
‘We want to remind consumers, especially those who are newly in financial difficulty, that lenders are able to provide you with support. There are options available to you which will reflect the uncertainties and challenges that many customers will face in the coming months. It is also important that households in serious financial difficulty seek debt advice for support.
‘We understand that many people will continue to live in financial uncertainty as the impact of coronavirus continues. Our surveys have shown that younger and BAME consumers have been impacted more than others, with a large amount of the population already having seen significant changes to their financial stability since the start of the pandemic.’