Nine steps to cut debt

FIVE-MINUTE GUIDE TO... SUMMER DEBT

- By Harvey Jones

SUMMER is meant to be a time to relax, but for many households the warmer months bring a chill to their finances.

With holidays, childcare costs, travel and everyday bills all piling up at once, the risk of falling even deeper into debt is growing.

An alarming number of people are now relying on credit cards or Buy Now Pay Later (BNPL) schemes to stay afloat, with nearly one in five dipping into their overdraft every month.

Almost half admit they're struggling to cope with rising prices, while 75% feel worse off financially than last year, according to a survey carried out by Quotezone.co.uk.

Chief executive officer Greg Wilson said: "Households face an increasingly difficult time as bills continue to escalate, with three quarters feeling worse off this year."

Citizens Advice also reports a sharp jump in household bill debt, rising from £2,194 per client in 2022 to £2,875 last year, with energy and council tax arrears among the biggest burdens.