1.9 million households miss payments in the run-up to Christmas
Which? has estimated 1.9 million households have missed payments in the run-up to Christmas.
Our survey* of 2,000 people has found that around 6.7% have failed to meet deadlines on either mortgage, rent, bill or credit payments in the past month. By combining the study's results with population numbers, that figure equates to almost two million households in the UK missing their demands in December.
More than half of people have also admitted to making a financial adjustment - such as cutting back on essentials, selling items or dipping into savings - as a result of the cost of living crisis.
Here, Which? delves into the detail and explains how fears loom over another jump in missed payments post-Christmas.
Concern over increased struggles in the new year
Which?’s Consumer Insight tracker shows the percentage of UK households that have missed or defaulted on at least one payment in the past month - whether it be on the mortgage, rent, loan, council tax or credit card and utility bills.
Our data tells us that missed payment rates generally tend to be lower in the lead-up to the festive period before peaking in January.
Source: Which? Consumer Insight Tracker, Online Poll weighted to be nationally representative, approx 2,000 respondents per wave. The chart shows the proportion of households who have missed a housing, bill, loan or credit card payment in the last month.
The start of the new year sees many households having to pay back their Christmas expenses as well as their usual household bills.
Last year, similar research by Which? found an estimated 1.7 million households missed at least one payment in December – a figure which shot up to 2.5 million in January 2022. Therefore, it seems likely 2023 will follow that trend.
On top of that, households are heading into the new year in a weaker position as they try to cope with the combined pressures of Christmas and the cost of living crisis.
- Find out more: 17 ways to save money on your living costs
More than half make financial adjustments
Nearly six in 10 people had made at least one financial adjustment – such as cutting back on essentials, selling items or dipping into savings – in the past month to cover essential spending. This potentially equates to an estimated 15.8 million households.
This is a significant increase on the four in 10 seen this time last year, but lower than a peak of two-thirds making adjustments in September 2022.
Source: Which? Consumer Insight Tracker, Online Poll weighted to be nationally representative, approx 2,000 respondents per wave. Adjustments include: cutting back, dipping into savings, borrowing from friends and family, taking out credit cards or loans, selling items, using an overdraft.
Renters more likely to miss payments
The latest findings from Which? reveal that, in December, renters were more likely to miss a housing payment (6.4%) than mortgage holders (2.5%).
Of those surveyed, 3.1% reported having missed a loan or credit card payment and 4.6% reported having missed a bill payment.
The most common type of bill missed was energy, at 2.3% of households, followed by council tax, phone, and broadband.
- Find out more: what to do if you can't pay your rent
What to do if you're struggling with payments
High mortgage rates, increased rental fees, soaring inflation and a reduction in energy bill support from April will each add to the strain on finances.
Anyone missing or struggling to afford essential payments should speak to their provider immediately and ask if they are able to offer temporary help.
Households can also visit gov.uk to find out more about the cost-of-living help and support available. Regulators such as Ofgem and charities such as StepChange and Citizens Advice can also provide help and information.
Which? has launched a campaign calling for some businesses to do more to help consumers struggling to make ends meet, including making sure their customer service departments are sufficiently equipped to deal with high levels of queries.
Rocio Concha, Which? director of policy and advocacy, said: 'With 1.9 million households missing important payments in the run up to Christmas, we’re worried that many more people could be facing financial crisis in January – as the credit repayments pile up and the cost of living crisis continues to bite.'
- Find out more: help if you're struggling to pay your energy bill
* The Consumer Insight Tracker is an online poll conducted monthly by Yonder on behalf of Which?. It is weighted to be nationally representative with approximately 2,000 respondents per wave.
