https://www.fca.org.uk/publication/rese ... y-2020.pdf
Some pre-COVID warning signs that make me think even a small rise in interest rates would cause trouble for many people:
- 20.3 million could only continue to cover their living expenses for less than three months, if they lost their main source of household income
5.6 million held one or more high-cost loans
5.1 million were constantly or usually overdrawn
2.8 million had persistent credit card debt
Consumer expectations for the next five months as at October 2020:
- 19.6 million adults expected to struggle to make ends meet, see their debt increase, or were not confident they could pay their bills or
keep up with their mortgage, rent or credit and loan payments
17.5 million expected to cut back on essentials like food and clothing, and 5.6 million expected to use a food bank
15.9 million expected their household income to fall
9.7 million expected to borrow from friends and family
8.1 million expected to take out a new credit product or borrow more on an existing one
6.7 million expected to need debt advice
I believe there are about 53 million adults in the UK so these numbers represent a significant proportion.
(I am posting as the match is on. Last time I checked the score, England were up 1 and I'm too tense to watch any longer.)
Best wishes
Mark.