Poor families are drowning in debt

Many low-income households face a difficult 2018

MORE than a quarter of poorer households are struggling with debt, a report has warned.

Around a sixth of low-income families are behind with repayments or bills, says the Institute for Fiscal Studies. Another 10% are spending at least 25p in every £ 1 of their disposal income on keeping up payments on unsecured debt, including credit cards and loans.

It comes as figures show the unsecured debt mountain has topped £200billion, fuelled by low interest rates. The IFS found, unsurprisingly, that the better off are more able to

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It is expected to produce around 45,000 barrels of oil a day at its peak. keep up with debt repayments. Just one in 20 of wealthier households are struggling with debt repayments.

David Sturrock, a research economist at the IFS and an author of the report, said: “Most unsecured debt is held by high-income households who look able to manage it, and more than half of those with debts have enough financial assets to pay them off.

“But debt looks like a real problem for a significant minority of those on NIL-NIL WINNER Everton v Chelsea low incomes.” Helen Barnard, head of analysis at the Joseph Rowntree Foundation, which funded the research, said: “Low-income household are facing a difficult 2018, with rising prices, frozen benefits and a wage squeeze all adding further pressure. “The Government, regulators and lenders need to not only look at increasing access to affordable credit, but also at the financial pressures that can lead families to take on debt in order to get by.” Low interest rates have seen unsecured debt mountain soar