Debt levels surge among single parents

Posted by Michael Bolt in Dealing with Debt on 7 April 2015 - Michael worked as a Credit Analyst at checkmyfile until 2015

The number of single parents who have sought help with debt problems has surged in the past two years, according to figures released by StepChange, the debt advice charity.

The charity said that 62,259 single parents contacted it for advice and help in 2014, representing a 105% increase on the number who sought help in 2012.

Wider economic trends, including the increase in the cost of living, along with wage stagnation, have hit families where only one adult is likely to be employed, often on a part-time basis in order to fit around childcare needs.

Along with single parents, the under-25s were the group found to be mostly likely affected by debt problems.

Single parents were found to be more likely to be in arrears on essential bills than others, including their rent, council tax and energy bills. It was also found that single parents were more likely to have debt on high cost credit forms, such as catalogue accounts and store cards.

Overall, single parents accounted for 18.3% of the cases handled by StepChange, despite making up 10.6% of the population. As a group, they were found to be disproportionately likely to seek advice.

Of the single parents who contacted the charity for assistance in 2014, 31% of single parent clients were found to be in arrears on their council tax bill. Similar proportions, 30% and 32% respectively, were in arrears on their water bill and mortgage.

The Chief Executive of StepChange, Mike O’Connor, said that single parent families face a ‘unique set of vulnerabilities’ and are disproportionately represented amongst StepChange clients. He called on the next government to tackle problem debt, an issue that costs the UK economy £8bn a year, and urged for action to be taken to help people build ‘precautionary savings’ to avoid debt and protect individuals who fall behind on debt from charges.

Do I Have a Default? How to Find Out

For lots of lenders, coming across a default on your Credit Report is a troubling sign. It’s certainly more serious than a missed payment or arrears on your file, which are likely to have less of an impact on your chances of being approved. A default represents a key moment in the eyes of a lender: it shows that on a previous credit agreement you stopped being a borrower and became a debtor.

Published on 31 Aug 2018 by Jamie Mackenzie Smith

Full Article

Can you go to prison for debt

The short answer is: yes, you can go to prison for debt. But it’s highly unlikely, and there’s still a lot you can do to help keep yourself or a loved one out of that situation.

Published on 22 Aug 2018 by Barry Stamp

Full Article

Northampton Court CCJ – Why is it on my Credit Report?

If you’ve been issued with a CCJ, chances are that it could appear on your Credit Report as having come from Northampton County Court Business Centre (CCBC), even if you or the claimant have no ties with Northampton whatsoever.

Published on 31 Jul 2018 by Jamie Mackenzie Smith

Full Article

What Happens When You Miss a Payment?

Late payments are a common entry on Credit Reports and can occur against all credit agreements – everything from mortgages to store cards. Unless you have a Direct Debit set up to make repayments automatically each month, you’re reliant on remembering to physically make your repayments each month and inevitably, mistakes happen.

Published on 6 Jul 2018 by Kiah Phillips

Full Article

If I Pay My CCJ Will It Go Away?

2017 saw the highest number of County Court Judgments (CCJs) issued in England and Wales since records began in 2005, according to official figures by Registry Trust. That means it’s more important than ever to make sure you know what to do if you get issued with one, and how to prevent one appearing on your credit file in the first place.

Published on 23 May 2018 by Ben Ryland

Full Article

Do I Have a CCJ? How To Find Out

How to check for a CCJ

A County Court Judgment (CCJ) is generally only issued by a lender once they have exhausted all other methods though following a CCJ additional tactics can be deployed such as the use of bailiffs.

Published on 23 Mar 2018 by Jamie Mackenzie Smith

Full Article

Understanding a default notice and what to do when one arrives

No one wants a default on their credit file, but sometimes there’s little you can do to prevent it. Perhaps your household income dropped due to redundancy, you’ve suffered an illness or an unexpected large expenditure has cropped up. Whatever the reason, in times of hardship financial commitments are often among the first things to be affected.

Published on 21 Mar 2018 by Ben Ryland

Full Article

Dealing with debt collectors

Don’t think for a moment that you’ll never see a debt collector in your lifetime. Even if you have a sparklingly brilliant credit file, you could find yourselves facing a doorstep collector.

Published on 19 Feb 2018 by Barry Stamp

Full Article

Does Statute Barred Mean My Debt is Written Off?

If you look around on the internet for debt advice you might see one questionable tip popping up from time to time: ‘don’t pay off your debts, wait six years for it to become statute barred and you’ll be home scot-free.’ If this sounds too good to be true, that’s because it is, and if you think it’ll be without consequence you could be in for a nasty surprise.

Published on 10 Jan 2018 by Tom Magor

Full Article

How Your Credit Score is Affected When a Default Drops Off

If you’ve got one default, you might be counting down the days until it is no longer reported to the Credit Reference Agencies. But if you have more than one, will you see your Credit Score rise as each one drops off of your Credit Report?

Published on 4 Jan 2018 by Richard Catlin

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews