Equifax Financial Health Report 2023 – shedding light on the state of UK household finances

We recently shared some of our thoughts on the challenges our customers face during this cost-of-living crisis with TDX Group, an Equifax company, which have been used to form part of its 2023 Financial Health report.

The report sheds light on the current state of UK household finances and provides recommendations on how people can improve their financial wellbeing.

More personal debt and higher mortgage repayments

Households in the UK took on an extra £72bn of personal debt in 2022, compared to 2021, a 4% increase amounting to an extra £1,367 per adult. 

This was at a time when both the cost of credit and family bills were also getting more expensive.

Whilst most consumers appear to be managing for now, it predicts that, without further support, more households will fall into debt for the first time due to mortgage shocks expected later this year, when 1.4 million consumers could face a 50% increase in their monthly mortgage repayments.

New spending habits

It also went on to highlighted that the way people shop has changed, with consumers relying on new financial solutions, such as buy now, pay later credit and dipping into savings to pay for essentials.

And perhaps most worryingly, it revealed a sharp increase in the number of people falling behind on car loans, mobile phone bills, broadband and paid-for TV, predicting more households will fall behind on repayments across a wider range of products in 2023.

Read more about the report’s findings and recommendations on ways in which you can improve and protect your financial wellbeing.