Families set to be thousands of pounds worse off as cost of living crisis grips the nation

FAMILIES are struggling to heat their homes and put food on the table as they grapple with soaring inflation, rising interest rates and a looming recession.

Household bills have skyrocketed since a cost of living crisis took hold on the nation and there are fears we are heading towards a debt crisis.

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According to the Office for National Statistics, 87% of adults in the UK reported an increase in their cost of living in April 2022.

It highlights a worrying trend of people being forced to borrow out of necessity each month with one in ten people having used Buy Now Pay Later (BNPL) to pay for essentials, according to research by Hargreaves Lansdown.

And it is feared that this will only get worse as interest rates continue to rise and inflation soars further, despite already being at a 40-year high.

There are growing concerns that families, whose finances are already precarious, could be forced to the brink as their debts continue to grow.

The Resolution Foundation estimates an extra 1.3 million people will fall into absolute poverty in 2023, including 500,000 children.

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More debt advice and debt management services are needed to help -  we've previously looked at some of the most commonly used ones.

Chris Davis is chief executive at , a Manchester-based debt advice firm, which offers help to people who are struggling with unmanageable debt.

He said: “What is clear is that we are all facing financial pressure, the likes of which have not been seen before.”