8M PLUNGE INTO DEBT DISASTER

More than eight million adults are now living with problem debt, the Money Advice Service has warned.

Worst hit regions are the North East and Wales where 17.7% of people are in trouble, according to the research.

In the more prosperous South East the figure is just 13.3%, but people in Newham, East London, are in the most financial trouble – nearly 23% have debt woes.

More than one in five people in Tower Hamlets in London and Sandwell in the West Midlands are also struggling.

The picture is better for residents of East Dorset, Mole Valley in Surrey and Chiltern, Bucks – less than 10% have debt problems.

Sheila Wheeler, director of debt at the Money Advice Service, said: “This research tells us one in six people in the UK have financial worries, a figure that stands at over 8.3 million.”

She warned that debt “is a complex challenge” and that companies, charities and government agencies need to work together to help deal with the problem.

Last week, StepChange Debt Charity warned the use of direct deductions from people’s benefits by utility companies, housing providers, councils and others is forcing many more into financial disaster.

Organisations are allowed to grab struggling people’s benefits if they fall into arrears. But it just means they are forced to turn to more expensive credit to pay for essentials such as food.

“Direct benefit deductions are exacerbating problem debt for those who can least afford it,” warned StepChange chief Mike O’Connor.

If you, or someone you know, is struggling with debt, seek help.

There is plenty of free advice out there from the likes of Citizens Advice, StepChange or National Debtline.