New figures from Citizens Advice have laid bare the escalating personal debt crisis across England and Wales, revealing that more than 400,000 people required its help with debt problems in 2025 alone.
A New Year Begins with a Debt Surge
The charity reported that it assisted a staggering 407,416 people with debt issues throughout last year. This marks a dramatic 44% increase compared to the 282,564 individuals it supported in 2021, as the cost-of-living crisis began to take hold.
Worryingly, the first working week of 2026 has already seen a significant influx of people in distress, with around 13,300 individuals turning to the charity for debt assistance. The financial pressure on households is further underscored by the soaring amounts owed. Since 2021, the average debt for those seeking help has surged by 36%, climbing from £6,500 to £8,900.
The Human Impact of Problem Debt
Problem debt is defined as a situation where someone is behind on at least one priority bill, facing action from creditors, or forced to use credit to pay for essential items. A survey commissioned by Citizens Advice in autumn 2025, conducted by Opinium among 2,000 adults in problem debt, paints a grim picture of the consequences.
It found that in the previous six months, more than a third (35%) of those trapped in problem debt had been unable to buy essentials like food. This hardship was not felt equally, disproportionately affecting women (39%), people with a disability (51%), and those with a mental health condition (56%).
The psychological toll is severe. Nearly two-fifths (39%) of people said they felt overwhelmed by the amount of contact from creditors chasing payments. This figure rose to over half for those with disabilities (51%) and nearly three-fifths (57%) for people with mental health conditions. A fifth (20%) had experienced their phone, gas, or electricity being cut off.
Low Awareness of the "Breathing Space" Lifeline
The charity highlighted a critical gap in support, noting that awareness of the government's "breathing space scheme" remains dangerously low. This scheme is designed to give people temporary protection from creditor action to allow them to get advice and make a plan. However, the research found only around a quarter (24%) of those in problem debt had heard of it.
Anne Pardoe, Head of Policy at Citizens Advice, stated: "It’s clear the cost-of-living crisis hasn’t gone away. Millions of people are battling to keep their heads above water. It’s easy to feel overwhelmed by money worries, especially in January. But the most important thing to remember is that you’re not alone and there is help available."
She called for "simple changes" to the breathing space scheme, such as offering longer protection and harsher punishments for rule-breaking creditors, to help more people recover.
The charity shared the case of a woman in her 60s who fell into debt in 2025 after vet treatment for her cat. After missing a payment, her mobile phone was disconnected for a fortnight. She described the relentless stress of contact from creditors: "I dreaded hearing the letterbox going... It’s not on when you’re worried about where your next meal’s coming from, to be harassed all day, every day for money you’ve told them you don’t have."
Citizens Advice Tips for Those Worried About Debt
The charity offers the following advice for anyone struggling with debt worries:
- Organise your debts: Collect all related documents to create a full list. Remember, not paying priority bills like rent, mortgages, energy, and council tax can have especially serious consequences.
- Don't panic: Try not to feel overwhelmed when you see everything written down. Taking the first step to address the problem is crucial. You can then contact creditors to discuss your options.
- Seek free help: Citizens Advice can help you check eligibility for benefits and financial support and advise on next steps. Other free debt help organisations are also available.
