Almost two million disabled people in the UK have contacted debt advice charities over the past 12 months for support as they continue to suffer as a result of the cost of living crisis, Creditspring has found.

According to research by the lender, one in eight (12%) disabled people have contacted debt advice charities in the past year about their financial situations and worries. However, this figure increases for younger disabled people.

The research found that one in three (29%) young disabled people have contacted debt advice charities over money worries, three times the average of the UK (10%).

Furthermore, one in four (24%) 18-24 year-olds are relying on credit and loans to pay their bills, but this almost doubles (40%) for disabled people in the same age range.

As a result, one in three (29%) disabled people think their bank could do more to support them to make better financial decisions, with seven in 10 (69%) young people also backing these calls.

Although inflation has been dipping in recent months, almost four in 10 (38%) admit they are “terrified” for their financial future, with six in 10 (59%) disabled people saying that the cost of living crisis is making them feel financially unstable, compared to the 50% UK average.

The research also found that 15% of disabled people have turned to high-cost loans as they were rejected from mainstream lenders, with one in five (18%) admitting the fees were higher than expected, 20% missing a repayment and 15% ending up in a debt spiral.

Co-founder and chief executive officer at Creditspring, Neil Kadagathur, said: “The cost of living continues to disproportionately impact the most vulnerable members of our society – these stark figures demonstrate not only how disabled people, especially younger people, are struggling to stay financially afloat. As we approach another winter of high energy costs, many disabled people are hugely concerned about how they will juggle their finances, and the worry is that they’ll be forced to turn to high-cost or illegal lenders to make ends meet but end up piling up debt.

“Debt advice charities play a vital role for those struggling with their finances, but they shouldn’t be left to support vulnerable people by themselves - banks and other financial providers have a unique opportunity to provide support to customers.

“Our research highlights a clear need for change in the lending industry. New regulated products that are more inclusive, and easier to understand and use will make a big impact on the lives of people from all backgrounds, enabling them to be more financially stable, retake control over their finances and ultimately their future.”

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