80% of adverse credit borrowers worried about increasing bills

81% of people with adverse credit say a £100 increase in their bills would significantly impact their finances.

At the same time, nearly a third (32%) of people with adverse credit say they have increased their level of debt in the last 12 months, representing a significant increase compared to the previous wave of the research in Spring 2021.

Paul Adams, sales director at Pepper Money, said: “The impact of inflation and rising fuel and food prices has been widely publicised, and the cost of living is increasing faster than earnings. So, there’s a strong chance that monthly household bills will increase by £100 or more for many families – and this is a big concern for more than 8 in 10 people with adverse credit. Furthermore, the recent increases in the base rate by the Bank of England could increase repayments for customers on a tracker rate mortgage.

“Mortgage advisers can play an important role in providing their customers with peace of mind by discussing the options available to them. For example, an adviser may be able to cut monthly mortgage costs by sourcing a cheaper deal when a customer’s current deal comes to an end, or they may be able to lower the cost of servicing other debts by raising capital through a debt consolidation mortgage. When £100 a month can make such a difference to someone’s finances, every little helps – and mortgage advisers are in an excellent position to make a positive difference to customers with adverse credit.”