The FCA has urged consumers to get help as soon as possible if they are struggling financially because of the rising cost-of-living.

This comes as research from the regulator revealed that many people who are struggling financially are not seeking support because they are embarrassed.

Findings from the FCA, based on a study of 2,969 UK borrowers in financial difficulty, showed that 42% of borrowers who were struggling and ignored their lenders’ attempt to contact them had done so because they felt ashamed. Furthermore, two out of five people (40%) who were struggling financially incorrectly thought simply talking to a debt adviser would have a negative impact on their credit file.

The FCA’s study also highlighted that those who do get help are finding it useful, with around eight in 10 (79%) people in financial difficulty who used debt advice saying they would recommend it, and 70% saying it had been more helpful than they had anticipated. 

More than half (52%) of borrowers in financial difficulty also waited more than a month before seeking help. Of these, 53% regretted not doing so sooner, and the FCA found that this feeling of regret became stronger the longer people waited after first experiencing difficulties, increasing to two in three (67%) among those who waited more than six months.

“Anyone can find themselves in financial difficulty, and the rising cost of living means more people will struggle to make ends meet,” executive director of consumers and competition at the FCA, Sheldon Mills.

“If you’re struggling financially the most important thing is to speak to someone. If you’re worried about keeping up with payments, talk to your lender as soon as possible, as they could offer affordable options to pay back what is owed.”

Chief executive of the Money and Pensions Service, Caroline Siarkiewicz, added: “We know many people are currently feeling increasingly worried about money as the cost of living rises and many may turn to different forms of borrowing to help.

“Talking about money is more important than ever and makes many realise that they are far from alone. Taking the first step in talking about money problems can be the hardest to take but in doing so can help those get the support they need to find a way forward.”

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