12 million people in Britain will struggle to pay bills, watchdog says

 

A salesperson waits for a customer at Lewisham Market amid the outbreak of the coronavirus disease (COVID-19) in London, Britain October 13, 2020. REUTERS/Hannah McKay/Files

 

LONDON (Reuters) - Some 12 million people in Britain are likely to struggle with bills and loan repayments as the COVID-19 pandemic continues to wreak economic havoc, a Financial Conduct Authority survey tracking consumer financial resilience showed on Thursday.

 

The survey, conducted in July, found 12 million people in Britain had low financial resilience and also found that one-sixth of those people had become financially vulnerable since February, after lockdowns to control the virus slashed incomes and led to thousands of job cuts.

 

The survey, in which 7,000 people took part, showed that almost a third of adults have suffered a drop in income, while income for households has fallen by a quarter on average.

 

Black and Minority Ethnic respondents fared even worse, with 37% reporting a hit to their incomes.

 

More than a third of respondents, who already had low financial resilience and had a mortgage, said they were likely to fall behind on mortgage payments, while 42% of renters said they were worried about falling behind on their obligations.

 

36% of people feared falling behind on repayments linked to loans or credit cards.

 

"We want to remind consumers, especially those who are newly in financial difficulty that lenders are able to provide you with support," Sheldon Mills, the FCA's Interim Executive Director of Strategy and Competition said.

 

The regulator has put together a package of measures to ensure vulnerable households can access help after Oct. 31, when earlier COVID-19 relief initiatives such as loan and mortgage repayment breaks and the original Job Retention Scheme expire.

 

It has also encouraged borrowers to seek free advice on how to manage problem debts and urged banks and lenders to treat customers fairly, adding that firms should work with customers to provide support before they miss payments.

 

Options to negotiate new repayment plans, suspend, reduce, waive or cancel any further interest or charges will be open to customers, the FCA said.

 

However, banks needed to be transparent about how such actions could result in increased costs over the long term and how such support could impact personal credit profiles.

 

(Reporting By Sinead Cruise. Editing by Jane Merriman)

 

-- © Copyright Reuters 2020-10-22

 

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Why I came to Thailand, bloody cheap here. My only debts are my SO's debts, and that's up to her. I can walk away, anytime. I'm considering marrying her, just so she gets the pension. It's all a matter of timing, like too soon and I will inherit her debts, too late and she won't get much. 

in this case it cant be said it was self inflicted,

it was inflicted by their governments,

and while you could say the voters got what that they deserved,

thats not really the case, it was unpredictable that governments

would lose it and shut down economy, its unprecedented

lunacy, no one ever saw it coming

So, 12 million not so smart people that put themselves in too deep in loans as well as too high bills. Let´s just hope that´s not the smartest part of the country´s population. If so, there is no possible way to save the sinking ship. At least could have stayed in EU and given their citizens the possibility of free movements and work in other member states.

And if you asked those same 12 million people the same question a year ago, you'd probably have got exactly the same response.

32 minutes ago, Matzzon said:

So, 12 million not so smart people that put themselves in too deep in loans as well as too high bills. Let´s just hope that´s not the smartest part of the country´s population. If so, there is no possible way to save the sinking ship. At least could have stayed in EU and given their citizens the possibility of free movements and work in other member states.

You are totally off topic with your obvious dislike of the UK populace. 

Are there no folk in your country having financial problems because the virus....?

14 minutes ago, transam said:

You are totally off topic with your obvious dislike of the UK populace. 

Are there no folk in your country having financial problems because the virus....?

Same could be said for any population. I think he's one of yours.

2 minutes ago, EVENKEEL said:

Same could be said for any population. I think he's one of yours.

Of course...

He is Swedish, he told us so....????

4 minutes ago, transam said:

Of course...

He is Swedish, he told us so....????

Apologies.........

But they all seem to have money being on the smart phone all day

How can any older person live on 600 pounds a month possibly the worst western country pension in the world.

2 minutes ago, bkk6060 said:

How can any older person live on 600 pounds a month possibly the worst western country pension in the world.

It has been claimed (no links) that had our pensions been managed as well as the Dutch managed theirs, the pensions would be 70% greater than they are as of today???

25 minutes ago, transam said:

You are totally off topic with your obvious dislike of the UK populace. 

Are there no folk in your country having financial problems because the virus....?

Yes, it is! Have no sympathy for them either.

How am I off topic? You do not decide which opinion people on this forum shall have about the news and threads in this forum.

I am posting my opinion about the 12 million in the news that are struggling. NOT off topic. Stop with your nonsense and hard tries to decide over other members.

5 minutes ago, Meat Pie 47 said:

But they all seem to have money being on the smart phone all day

Exactly!

Just now, Surelynot said:

It has been claimed (no links) that had our pensions been managed as well as the Dutch managed theirs, the pensions would be 70% greater than they are as of today???

That would still s**k!

1 hour ago, Matzzon said:

So, 12 million not so smart people that put themselves in too deep in loans as well as too high bills. Let´s just hope that´s not the smartest part of the country´s population. If so, there is no possible way to save the sinking ship. At least could have stayed in EU and given their citizens the possibility of free movements and work in other member states.

Have you had a *Visa denied* to the UK because we left the E.U ?

1 minute ago, CorpusChristie said:

Have you had a *Visa denied* to the UK because we left the E.U ?

What do you mean? Why would I have had that? Relevance?

2 minutes ago, Matzzon said:

 Yes, it is! Have no sympathy for them either.

How am I off topic? You do not decide which opinion people on this forum shall have about the news and threads in this forum.

I am posting my opinion about the 12 million in the news that are struggling. NOT off topic. Stop with your nonsense and hard tries to decide over other members.

You are calling Brit folk "not smart" for having money troubles over C19 lockdowns etc.

The whole world is having money problems over C19, yet you call them not smart.

 

Explain....?

4 minutes ago, transam said:

You are calling Brit folk "not smart" for having money troubles over C19 lockdowns etc.

The whole world is having money problems over C19, yet you call them not smart.

 

Explain....?

It´s easy to explain. It´s not smart to live on credits and loans. It´s smart to make money and buy for cash. Then nothing can go wrong. 

Sure there is need to take loans for buy a house. However, never buy with the minimal cash deposit and always see to that you do not take on other things that might make it hard to pay.

 

The best way to buy a house is to put in 30% in cash and see to that the mortgage not exceeds the cost of renting a place for living.

Most of the people sitting with problems and are struggling have lived on too much borrowed money and credits. In other words, over there means. That´s STUPID!

 

There must also always exist a buffer of available cash, before you get into debt and credits.

1 minute ago, Matzzon said:

It´s easy to explain. It´s not smart to live on credits and loans. It´s smart to make money and buy for cash. Then nothing can go wrong. 

Sure there is need to take loans for buy a house. However, never buy with the minimal cash deposit and always see to that you do not take on other things that might make it hard to pay.

 

The best way to buy a house is to put in 30% in cash and see to that the mortgage not exceeds the cost of renting a place for living.

Most of the people sitting with problems and are struggling have lived on too much borrowed money and credits. In other words, over there means. That´s STUPID!

 

There must also always exist a buffer of available cash, before you get into debt and credits.

I am sorry I asked now, as you really are in a hi-so world of your own with blinkers on..????

 

Are you saying your Sweden has no unemployed, no low paid jobs, no lost businesses etc, and that the whole of the Swedish populace are all as smart as you....?

27 minutes ago, transam said:

I am sorry I asked now, as you really are in a hi-so world of your own with blinkers on..????

 

Are you saying your Sweden has no unemployed, no low paid jobs, no lost businesses etc, and that the whole of the Swedish populace are all as smart as you....?

According to that you are sorry you asked, must mean that you do not understand such elementary things such economic planning in life. Out of that reason you will also realize what group you fall in according to my opinion. ???? 

Regarding your stupid question, about things I´ve never mentioned. I kindly refer you to my earlier post that already given the answer. 
 

42 minutes ago, Matzzon said:

1 hour ago, transam said:

You are totally off topic with your obvious dislike of the UK populace. 

Are there no folk in your country having financial problems because the virus....?

Yes, it is! Have no sympathy for them either.

How am I off topic? You do not decide which opinion people on this forum shall have about the news and threads in this forum.

I am posting my opinion about the 12 million in the news that are struggling. NOT off topic. Stop with your nonsense and hard tries to decide over other members.

 

After that, all the things about being smart. Nothing to hide there, I already know that I am much smarter than the general population.

45 minutes ago, Surelynot said:

It has been claimed (no links) that had our pensions been managed as well as the Dutch managed theirs, the pensions would be 70% greater than they are as of today???

According to Global Pension Index of Mercer and the CFA Institute  the Dutch pension system is the best in the world. Just published for the 3rd time.  The ONLY problem: many people believe Mr Complot or Ms Nonsense more as the signed statement by an register accountant.

1 hour ago, bkk6060 said:

How can any older person live on 600 pounds a month possibly the worst western country pension in the world.

ahhhh, but, but

its going up another whopping 13.60 a month next year !!!

And everyone thinks pensioners get too much !!

47 minutes ago, transam said:

I am sorry I asked now, as you really are in a hi-so world of your own with blinkers on..????

 

Are you saying your Sweden has no unemployed, no low paid jobs, no lost businesses etc, and that the whole of the Swedish populace are all as smart as you....?

well actually, sweden never shut down so they are doing

comparably well compared to the populations with dumber leaders

1 hour ago, Meat Pie 47 said:

But they all seem to have money being on the smart phone all day

costs almost nothing.

2 hours ago, Matzzon said:

So, 12 million not so smart people that put themselves in too deep in loans as well as too high bills. Let´s just hope that´s not the smartest part of the country´s population. If so, there is no possible way to save the sinking ship. At least could have stayed in EU and given their citizens the possibility of free movements and work in other member states.

There are times Matzzon, when you post some dreadful things.

 

But non of the economic refugees or Islamic army will struggle because they live rent free and cash awards at our expense , only the British in the uk will have problems .

2 hours ago, transam said:

You are totally off topic with your obvious dislike of the UK populace.

Actually you got it all wrong there again. Can´t you just get your head around that it´s just you that I show an obvious dislike for. ????

They will struggle even more after Brexit. Everything will be more expensive. 

Be nice to the Scots..... next you might even pay a fortune for Haggis, because of tariffs....... Scotland will be the next EU member. 

3 minutes ago, faraday said:

There are times Matzzon, when you post some dreadful things.

 

I know. It´s good that you point that out. However, there must be someone that actually speak the evil truth. ????