In the landscape of personal finance, debt can be a double-edged sword. While it can be a tool for achieving milestones like buying a home or funding education, excessive debt can lead to financial strain and insecurity. In the United Kingdom, the issue of personal debt has gained significant attention in recent years. In this blog we’ll discuss the scale of the problem, the impact on employees and how at Benefiz we help our clients support their employees. 

 

To comprehend the gravity of the situation, it's crucial to examine the numbers. According to the latest statistics, the level of personal debt in the UK remains substantial. The latest available figures as of June 2023, the average personal debt in the UK has reached £34,597 for adults, an increase of £1,187 since 2022. While this figure may fluctuate over time, it underscores a persistent challenge faced by many individuals and families across the nation. Step Change Debt Charity, a prominent player in the field, reported a staggering 620,000 contacts in the past year alone, extending assistance to over 180,000 individuals with comprehensive debt advice. According to Step Change, nearly a quarter of their clients attribute financial distress to the escalating cost of living.