Women and young adults account for high proportion of debt charity’s clients

StepChange said it continues to see renting as the most common housing tenure among clients.

A relatively high proportion of women and younger adults are seeking help with their debts, according to StepChange Debt Charity (Dominic Lipinski/PA) (PA Archive)

A relatively high proportion of women and younger adults are seeking help with their debts, according to a charity.

More than three in five (63%) new clients are women, StepChange Debt Charity said.

Clients aged between 25 and 44 are also over-represented, making up 60% of the client base, it added.

Overall, nearly one in three (32%) people getting help from StepChange Debt Charity last year were in a negative budget – where they had more money going out than coming in.

The proportion of clients receiving Universal Credit, at 37%, increased by three percentage points in 2023 compared with 2022, and StepChange said it continues to see renting as the most common housing tenure among clients (64%).

The average monthly amount available to clients for debt repayment (their surplus) fell from £69 in 2022 to £53 in 2023.

Over the past year we've really begun to see the impact of the cost-of-living crisis take hold

Vikki Brownridge, StepChange

Cost-of-living pressures were the most common reason for debt, cited by a quarter (25%) of people seeking help.

The average amount of household arrears among StepChange clients increased to £3,124 in 2023, up from £2,833 in 2022.

Typical unsecured (non-mortgage) debt among clients reached its highest level since 2013, standing at £14,654 in 2023, up from £13,563 in 2022.

This rise has mainly been driven by higher amounts of credit card and personal loan debts, the charity said.

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In 2023 the charity provided full debt advice to 183,403 clients, which is an increase of 10% year-on-year.

Vikki Brownridge, chief executive at StepChange Debt Charity, said: “Over the past year we’ve really begun to see the impact of the cost-of-living crisis take hold. Particularly among those on low incomes, household financial insecurity is a growing threat.

“Both a rise in household arrears and unsecured debt amounts suggests those struggling are turning to credit to cover their essentials more than ever.”