Low financial resilience driving debt issues: our response to FCA Financial Lives
National Debtline says a lack of financial resilience is driving debt problems.
Posted May 16, 2025
- A lack of financial resilience is driving debt problems.
- The two most common reasons for debt among people helped at National Debtline are income shocks (26% of people helped) and expenditure shocks (25% of people helped).
Matt Hartley, Director of Engagement at Money Advice Trust, the charity that runs National Debtline, says:
“On the frontline of debt advice, we see every day how a lack of financial resilience pushes people into financial difficulty. Life events, like losing your job, falling ill or splitting up with your partner, are things we’re all likely to experience at some point in our lives. But many people have no financial safety net they can fall back on. Without rainy day savings or access to affordable credit, people can quickly find themselves in difficulty.
“The FCA’s findings echo our own: if you’re struggling, the best thing to do is seek debt advice. Nine in ten people we helped last year saw their debts reduce or stabilise, while three in four reported a positive impact on their emotional or mental health.
“But we can’t afford to leave it until people are already in difficulty. We need to do more at a national level to prevent financial difficulty occurring in the first place. Government must ensure the welfare system provides adequate and effective support when people experience life shocks and make building financial resilience a new national mission.”
