Shock report reveals thousands of kids in ‘problem debt’ trap
THOUSANDS of children are living in households trapped in ‘problem debt,’ new research has revealed.
The Children’s Society, publishing its latest findings, warns a quarter of families in Greater Manchester have been failing to keep up with household bills and loan repayments in the past year.
Charity experts say they are ‘deeply concerned’ about the damaging impact of debt on children’s lives. In some cases kids are going without basics such as food, clothing or heating, as well as suffering worry, anxiety and bullying.
In Stockport 14,300 children are estimated to be living in debt, according to the research - the third highest number in the region. The highest number is in Manchester with 25,000, followed by Wigan at 18,400.
The charity defines a family in ‘problem debt’ as one which has fallen behind on the repayments of bills or credit commitments. The most common source of problem debt is arrears on energy bills, followed by loans from friends and family, bank loans, and council tax.
Rob Jackson, north west area director at The Children’s Society, said: “Again and again we have raised the urgent problem of fam- ilies who are trapped by debt, and whose children often pay the price with their mental and physical health.
“With unfair and unsustainable repayment plans, hidden charges, soaring interest, visits from intimidating bailiffs and the fear of eviction, the odds are stacked against parents who are desperate to find a way out of their debt.
“Meanwhile mums and dads are being forced to make impossible decisions between feeding and clothing their children, and paying the bills. It is now absolutely clear that this problem is not going away unless the government takes action to give families the breathing space they need to get their finances back on track. Acting now could have a hugely beneficial impact, not just on family finances in the short term but on the futures of some of the country’s most vulnerable children.”
The Children’s Society, as part of its Debt Trap campaign, is calling for changes to how creditors treat families with children who fall behind on bills and repayments.
It is urging the government to introduce a 12-month ‘breathing space’ scheme to give struggling families a period of protection from additional charges, mounting interest and enforcement action while they seek advice and get back on their feet.