1 in 4 people in Wales have missed payments on important bills
The Money and Pensions Service is asking people to 'act now' to avoid problem debt.
One in four people in Wales say they've missed payments on vital bills this year, according to new research carried out by the Money and Pensions Service.
Credit cards and utilities are apparently the most common bills going unpaid, while only two thirds of people would speak to their creditor.
As part of its 2023 Talk Money Week, MaPS says acting now can help people avoid “the trap of long-term problem debt.”
A survey of 141 adults, commissioned by the Money and Pensions Service (MaPS), shows that one in four people (27%) have missed at least one payment in 2023.
Of those, 14% said it was the first year this had ever happened.
The data is being released to mark this year’s Talk Money Week (November 6-10), run by MaPS, which is aiming to inspire people to “do one thing” that improves their financial wellbeing.
It reveals that credit card repayments were the most common type that went unpaid (13%), followed by utilities (10%), Council Tax or rates (8%) and bank overdrafts or loans (8%). One in 20 had missed a rent (4%) payment and 1% a mortgage payment.
Among those who’d missed one before 2023, credit card repayments and Council Tax or rates were the most common (both 32%). Utilities (23%), bank overdraft or loans (17%), rent and mortgage payments (both 14%) were not far behind.
This Talk Money Week, MaPS is asking people to “act now” if they’re struggling to make payments.
Specifically, the organisation says if you’re about to miss one, speak to your creditor because they may be able to offer a better tariff, a more flexible payment arrangement or contact with a charity who can help. They also have a responsibility to treat you fairly by offering affordable options.
However, the figures also show only two thirds of people (69%) would actually talk to their creditor and in fact, one in eight people (13%) would do nothing if they were heading for trouble.
For people who’ve already missed payments, MaPS says they should consider taking free debt advice as soon as possible. However, just a third of people (36%) said they would speak to an organisation offering free help or debt advice if they thought they were going to miss a payment.
Most preferred to cut back on essentials (73%), while others would speak to family and friends (39%). One in four (18%) said they’d take out more credit to meet the cost.
Lee Phillips, Wales Manager at the Money and Pensions Service, said: “It’s no secret that people are struggling this year and as these results suggest, many household budgets in Wales are becoming severely stretched.
"However, some people wouldn’t take any action at all if they started to struggle and this could push them into the trap of long-term problem debt.
“This Talk Money Week, we’re asking people who are struggling with payments to “do one thing” and act fast.
"If you’re going to miss a payment, speak to your creditor in advance and if it’s already happened, consider getting free debt advice.
"Acting now will give you the chance to manage the situation, find a way forward and avoid the devastation that debt can cause.
“It can be difficult to take that first step, but it can make a massive difference. We offer a free, impartial guide on starting the conversation via our MoneyHelper service and it’s available now for anyone who needs it.”