The State of Household Debt & Insolvencies in 2025


If you’ve felt like your money just doesn’t go as far as it used to, you’re definitely not alone. From rising bills to higher interest rates, 2025 has been another tough year for household finances across the UK. The cost-of-living crisis may no longer be front-page news every day, but it’s still very much part of people’s everyday reality, and it’s affecting everything from how we shop, save and even plan for the future. In this blog, we’ll take a closer look at what’s happening with household debt & insolvencies in the UK right now – why it’s happening, who’s being affected and what can be done if you’re struggling. Whether you’re just starting to feel the pressure or already deep in it, you’re not alone, and support is available.

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