"Changing Household Budgets" - new Money Advice Trust report published today

National_Debtline

Hi all

Just wanted to bring your attention to a report published today by our parent organisation - the Money Advice Trust (MAT) - entitled Changing Household Budgets. It reveals massive changes over the past six years in the types of debt problem our service typically deals with – and an increase overall in the number of households susceptible to debt problems.

We are finding that more people than ever before now need help with energy debts, water debts, telephone debts, council tax debts, and catalogue shopping debts – whilst less people report problems with traditional credit products such as bank overdrafts, loans and credit cards.

The full report can be found at:

https://www.nationaldebtline.org/EW/Documents/Changing household budgets.pdf

We’d be really interested to hear your thoughts on it as well as any trends that you think haven’t been identified yet. You can reply here or track us down on Twitter @natdebtline .

Thanks for reading!

Dennis

SailorSam

I was watching this story on Bbc Breakfast this morning.
It's cos there has almost been a freeze on wage rises for so long now. It's not just those on benefits that are feeling the pinch. Many people who are working are finding themselves in low paid job and where in the past they've had top-up benefits to help they've been cut now. And all the time we're seeing prices going up.
What's the answer ? Is there an answer ? The Govt publish statistics to say the economy is on the up and we're all doing better, but how can this be true when charities and the Church are seeing more and more people visiting their foodbanks for help.

FireWyrm

SailorSam wrote: »

The Govt publish statistics to say the economy is on the up and we're all doing better, but how can this be true when charities and the Church are seeing more and more people visiting their foodbanks for help.

Perhaps because during the 'boom' years of easy credit, people became accustomed to a certain level of lifestyle that was never truly sustainable. Now the credit merry-go-round has stopped, they are unwilling to sacrifice unnecessary expenditure in favor of simply paying for living expenses and therefore continue to prioritise unnecessary expense over living expense. Fixed household expenses (bills and food) have not actually risen all that much in real terms. It still costs around £1000 a month to service a household, like it always did. The difference is, society is carrying a mountainous debt burden that is simply unsustainable. If you were already just treading water and up to your eyes in debt, remove the credit and all of a sudden, you're drowning. Add to that a certain expectation of a lifestyle (takeaways, sky, mobiles, 2 cars, annual holiday) that you are unwilling to give up, because then you would be back to being 'poor' and you have what we are seeing today. The truth is, they were never rich enough to sustain the lifestyle in the first place.

As yourself how it is that government guidelines say it costs £400+ a month to feed a family of 4. It is simply a lie. It actually costs about £250 - £300 at most if you buy vegetables and meat. It is actually all the extras and luxuries, the ready meals, the sweets, crisps and biscuits and all the things we buy that arnt actually 'food' that ends up inflating the food 'bill'. We dont eat significantly more than we ever did, we eat differently. That standard cuisine of this island has always been based around one large meal a day of meat/fish and veg and two smaller 'snacks' of bread and cheeses. I suspect a lot of this is frankly down to TV and advertising. 50 years ago, advertisers had to work bloody hard to convince a housewife to part with unnecessary cash - these days, they are throwing credit at us and telling us we are 'poor' if we dont have x,y and z.

Former_MSE_Andrea

Thanks Dennis

On_my_way

...it's also because it is considered entirely normal for everyone to have their own car, for everyone to own a tablet, computer, laptop, computer games etc.

15 years ago it was quite different!!!

FireWyrm

On_my_way wrote: »

...it's also because it is considered entirely normal for everyone to have their own car, for everyone to own a tablet, computer, laptop, computer games etc.

15 years ago it was quite different!!!

And by inference, abnormal not to have these things. We gave up Sky late last year and my youngest reported the other day that her friends think we are 'weird' for not having it. They apparently view us as some sort of Stig-like family who are poor and hard-done-by when the reality is very different. We dont have Sky because I was tired of paying for something that was endless repeats - sometimes, the exact same programme three or four times in 24 hours on some channels. Before Sky, no one paid for TV beyond the obligatory license but now it is quite normal to shell out between £50 and £100 a month on it.

Years ago we didnt have mobile phones, now, everyone has one and the contracts are between £25 and £75 a month per phone. Granted, technology has moved on, but it doesnt mean that you dont have to stop and think about why you have this device, what it is actually costing and what you need it for.

When I was a kid, takeaway meant fish and chips which was a very rare treat. Now, we're told we are hard done by if we dont have at least one takeaway a week.

Everyone has a car, if not two or three to a household. I've seen people drive 100 yds to the local Co-Op rather than walk it.

Depth_Charge

National_Debtline wrote: »

Hi all

Just wanted to bring your attention to a report published today by our parent organisation - the Money Advice Trust (MAT) - entitled Changing Household Budgets. It reveals massive changes over the past six years in the types of debt problem our service typically deals with – and an increase overall in the number of households susceptible to debt problems.

We are finding that more people than ever before now need help with energy debts, water debts, telephone debts, council tax debts, and catalogue shopping debts – whilst less people report problems with traditional credit products such as bank overdrafts, loans and credit cards.

The full report can be found at:

https://www.nationaldebtline.org/EW/Documents/Changing household budgets.pdf

We’d be really interested to hear your thoughts on it as well as any trends that you think haven’t been identified yet. You can reply here or track us down on Twitter @natdebtline .

Thanks for reading!

Dennis

Hi Dennis

Interesting read, thanks for posting

This will come as no surprise and will be nothing new to many face to face debt advisers and others who have to deal with priority debts every day / every week

I also see many people who are in debt payment arrangements on non-priority debts who fall behind with their rent, mortgage, council tax etc.

There are certainly many people in my opinion who would potentially benefit from reviewing their debt remedy situation and may in turn benefit from an alternative option or solution rather than continue to struggle and / or fall behind with priority debts.

The disposable income crash is a hot topic within the debt advice sector and has been for some time now with some very interesting debates, shifts and arguably manoeuvring (its a live subject to say the least with plenty of mileage left in it)

Unfortunately those struggling with little or no disposable income, priority debts, including the most vulnerable often find that certain sections of the debt advice sector do not or are not too interested in dealing, negotiating with priority creditors, complex time consuming cases or taking clients on with debt management plans.

Debt advice and support needs a genuine combined approach of face to face, telephone & digital and not just for those where profit or financial interest comes first alongside with 'again arguably' a whole lot of claims, propaganda & box ticking.

Times have and are changing, the tide has come in leaving a stranded type problem in certain sectors

My opinions are based on years of rock solid experience and I fully stand by them

Comments very welcome

DC