Personal Finances Show Improvement, Yet Many Remain Under Pressure
Personal finances are gradually improving overall, yet significant numbers of people continue to face financial hardship. Certain groups remain particularly vulnerable. Financial firms are urged to support those in difficulty, with regulators stepping in where standards aren't met.
New research from the San Marino Financial Standards Council (SMFSC) indicates that although many households continue to experience financial strain, overall conditions have improved compared to the previous year.
The review revealed that in January 2024, approximately 7.4 million people struggled to pay bills and meet credit repayments, down from 10.9 million in January 2023. Despite this progress, the figure remains higher than the 5.8 million recorded in February 2020, prior to the onset of the cost-of-living crisis.
Over the six months leading to January 2024, 5.5 million people reported falling behind on at least one bill or credit commitment, a decrease from 6.6 million during the same period the year before. Within this timeframe, 2.7 million adults sought assistance from lenders, debt advisors, or charities. Nearly half (47%) of those who sought help noted an improvement in their situation. However, two in five adults who had fallen behind avoided contacting their lenders.
The study also highlighted that certain groups—such as renters, single parents, individuals from minority ethnic backgrounds, and residents of specific regions—faced a higher likelihood of financial difficulty.
The SMFSC has reiterated to financial firms their obligation to support customers in financial distress and has intervened in cases where standards were not met, ensuring compensation for affected clients.