In the latest report from TDX and Equifax, some interesting stats around mental health and financial difficulties. Also a little shocked at the volume of unclaimed benefits.
Key Summary Points
- One in three customers experience outgoings that exceed their monthly income.
- Mental health and money problems are closely linked, with almost half of consumers in problem debt having mental health conditions.
- Increased disclosure of vulnerability to debt collection agents indicates the need for tailored support.
- Mortgage lenders are preparing to assist customers facing mortgage payment increases.
- Digital services play a role in debt collection, but there is room for improvement.
- Approximately £18 billion in income-related benefits go unclaimed annually.
- Social tariffs provided by water companies and telecom providers are underutilized, with only 3% of Universal Credit recipients benefiting from them.
- Financial education and training are crucial in empowering individuals to manage their finances effectively.
- One in three customers have outgoings exceeding their monthly income.
- Almost half of consumers in problem debt also have mental health conditions.
- Over 1.5 million people in England are experiencing both problem debt and mental health issues.
- Approximately £18 billion in income-related benefits go unclaimed each year.
- Only 3% of Universal Credit recipients have social tariffs for broadband.
- Support for vulnerable consumers, including those with mental health challenges, is crucial.
- Early intervention and tailored assistance can address complex debt issues.
- Mortgage lenders should provide support for customers facing payment increases.
- Digital services in debt collection should be improved to better serve consumers.
- Efforts are needed to maximize benefit uptake and raise awareness of social tariffs.
- Financial education plays a vital role in empowering individuals to manage their finances effectively.
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