Financial inclusion charities have highlighted that “too many people” managing “higher-than-average long-term debts” are being excluded from financial services. It comes as a study found that nearly half of UK adults are living in “financially vulnerable” circumstances.
The study, published by financial inclusion organisation Fair4All Finance on Tuesday (16 July), found that almost half (44%) of UK adults are in a “financially vulnerable” place, and that many of those affected also struggle with accessing services like loans or credit.
The organisation explained that the adults living with financial insecurity came from a variety of backgrounds, from homeowners to young people on zero-hours contracts, claiming Britain’s money worries in 2024 “transcend age, class, occupation and other social boundaries”.
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Those who are managing “higher-than-average long-term debts” were found to have risen by 57% to 3.6 million people, while families in “crisis position” relying on credit to be able to afford necessities has grown by 11% in the past year.
The study found that many of the people affected by financial insecurity were using buy-now-pay-later schemes or short-term credit to top up their incomes, and that some may have to turn to illegal money lenders or loan sharks in search of support. One in five (22%) of the financially vulnerable people surveyed had been rejected for credit in the past year.
Vicky May, a mum-of-three who was able to put a deposit down on her house using a credit union, told Big Issue that access to financial services are a “great help”.
