The Money Advice Trust survey, conducted by the University of Nottingham, suggested there is a huge latent demand for debt advice and forecast a sharp rise in people seeking out help in the first half of 2012, driven by rising unemployment and stagnant wage growth.
The charity revealed that 1.54m got help from free debt advice agencies in 2011, up 10% on 2010’s total of 1.4m.
Joanna Elson, chief executive of the Money Advice Trust, said: “2011 was a tough financial year for many families across the UK; unfortunately more people are likely to struggle in 2012, with unemployment rising and wage growth relatively flat, while prices are going up.
“It is so important that people are aware of and can access the free advice that can make the crucial difference between allowing a difficult situation to spiral into unmanageable debt and regaining control of your finances.”
She warned that its research suggested more people are going to “extreme lengths” to manage their finances, such as selling jewelry, cars and even pets to make ends meet.
Elson said: “Far too few people do the one thing that stands the best chance of making a real difference, and that is seeking free, independent advice from charitable services like National Debtline, My Money Steps or Citizens Advice.”
