Could you cope with a £50 bill hike? 1 in 6 Brits couldn’t afford rise which may be on the cards
5.1million adults admit they would struggle to make ends meet if their mortgage or rent payments rose by just £50 a month
MILLIONS of households would struggle to cope if their monthly bills increased by just £50.
That's one of the shock discoveries by watchdog the Financial Conduct Authority (FCA), which has carried out its biggest ever survey about the state of the country's personal finances.
Some 17 per cent of those paying a mortgage or rent admitted they would struggle if their payments increased - that equates to 5.1 million people.
Overall, half of adults - 25.6 millon - are financially vulnerable.
That means they could potentially face difficulties with their money if, for example, their monthly outgoing rose because they have no savings or they have to stop work due to ill health.
Just under 8 million are "over-indebted" and another 4.1 million people - 8 per cent - have failed to pay a household or credit bill in three or more of the last six months.
The worrying findings add more weight to concerns that UK households are carrying too much debt.
The Bank of England is predicted to raise interest rates next month for the first time in a decade as it tries to check the rate of inflation - which could mean borrowers facing an increase in their bills of hundreds of pounds a year.
Last month The Sun Online reported a rise of 0.25 per cent in interest rates could leave mortgage payers facing a new bill of more than £200 a year.
And the banks have been asked to set aside an extra £10billion to cover potential losses from people who are unable to pay their debts.
IN THE RED Credit card lenders accused of pushing vulnerable customers further into debt
Joanna Elson of the Money Advice Trust, said the findings were concerning.
"With this week’s announcement of rising inflation, increasing living costs, low wage growth and a likely rise in interest rates, we are concerned that more families with already squeezed household budgets will be pushed into difficulty.
"Anyone who is struggling to cope with their finances, or is concerned that they may in the future, should seek free advice from a charity-run service like National Debtline, to try and stabilise their situation as soon as possible."
The FCA asked more than 13,000 adults about their financial situation between January and April this year.
More than 75 per cent of people have some kind of credit agreement, like a credit card, loan or store card.
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