Around four in five (81%) people with adverse credit are worried about the impact of increasing bills, according to new research by Pepper Money.

The latest Pepper Money Adverse Credit Study suggested that 81% of people with adverse credit had said that a £100 increase in their bills would significantly impact their finances.

At the same time, around a third (32%) of people with adverse credit said they have increased their level of debt in the last 12 months, representing a significant increase compared to the previous wave of the research in Spring 2021.

Pepper Money sales director, Paul Adams, said that the impact of inflation and rising fuel and food prices means a “strong chance” that monthly household bills will increase by £100 or more for many UK families.

“This is a big concern for more than eight in 10 people with adverse credit,” he commented. “Furthermore, the recent increases in the base rate by the Bank of England could increase repayments for customers on a tracker rate mortgage.”

Adams added that mortgage advisers now have an “important role” to play in providing their customers with peace of mind by discussing the options available to them.

“For example, an adviser may be able to cut monthly mortgage costs by sourcing a cheaper deal when a customer’s current deal comes to an end, or they may be able to lower the cost of servicing other debts by raising capital through a debt consolidation mortgage,” he continued.

“When £100 a month can make such a difference to someone’s finances, every little helps – and mortgage advisers are in an excellent position to make a positive difference to customers with adverse credit.”

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