What Happened in Debt This November?

As we head into the final stretch of the year, November has been another busy month in the world of debt and personal finance news.

A new StepChange Debt Charity report revealed how young people are increasingly falling into financial difficulty, often early in life, setting the stage for long-term challenges. From renters’ struggles and rising borrowing to the pressures of energy costs and repossessions, the need for early intervention and effective support has never been clearer.

This month, we’ve been tackling these pressing issues, advocating for better protections, and continuing to campaign for renters’ rights. Here’s a round-up of what StepChange has been working on and why it matters.

1. Interest Rate Cut

In November, the Bank of England's Monetary Policy Committee (MPC) reduced the Bank Rate by 0.25 percentage points to 4.75%, marking the second cut this year. This decision reflects ongoing progress in reducing inflation, although domestic inflationary pressures persist.

Key Message: The MPC's decision to lower the Bank Rate aims to support economic growth while striving to achieve the 2% inflation target. However, the Committee remains cautious, acknowledging that domestic inflationary pressures are easing more slowly than anticipated. This measured approach underscores the importance of balancing rate cuts with the need to maintain long-term price stability.

Quote: "We need to be careful not to cut rates too much or too quickly, so that inflation remains low and stable for years to come."

Bank of England

2. Rising Mortgage Arrears and Repossessions

Key Message: The number of mortgage repossessions has risen by 41% compared to last year, reflecting the growing strain on households trying to stay afloat amidst rising interest rates and living costs. This increase highlights the urgent need for lenders and policymakers to work together on practical solutions that support those at risk of losing their homes. Early intervention and tailored support for struggling homeowners can make all the difference in preventing repossessions.

Quote: “Mortgage arrears are rising steadily, and repossessions are increasing at an alarming rate. We need proactive measures from lenders and regulators to help people stay in their homes.”

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3. Renters Struggling to Make Ends Meet

Key Message: Our latest poll paints a stark picture of the challenges renters face. With rent prices soaring, many tenants are falling behind on payments or struggling to cover other essentials, like energy bills or food. Renters are overrepresented among StepChange clients, highlighting the disproportionate financial pressures they face. Stronger protections and fairer rental policies are essential to prevent renters from being pushed further into financial distress.

Quote: “Our data shows renters are at greater risk of financial hardship. It’s vital that policymakers address these challenges and provide stronger protections for renters.”

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4. Energy Price Cap: A Missed Opportunity?

Key Message: While stabilising energy prices through the price cap provides some relief, it falls short of addressing the deeper issues driving financial strain this winter. Many households are still grappling with the high cost of energy and accumulated debts from previous billing cycles. Without targeted financial support, vulnerable households face difficult choices about heating their homes or meeting other essential costs.

Quote: “While the energy price cap provides some stability, more targeted support is urgently needed to help households facing high energy costs and mounting debts.”

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5. Debt’s Early Grip: How Financial Difficulty Starts

Key Message: Our new report delves into the early stages of debt and how quickly it can take hold. Many people don’t realise they’re in financial difficulty until they’re already behind on essential bills or reliant on credit for everyday costs. By encouraging people to seek help sooner and removing the stigma around debt, we can prevent problems from escalating. Early intervention not only improves financial outcomes but also reduces the mental health toll of financial stress.

Quote: “Our report shows how financial difficulties can take hold early. The earlier people get advice, the better the outcomes—we need to break the stigma and encourage people to seek help sooner.”

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6. Borrowing on the Rise

Key Message: With the cost of living still high, more households are turning to credit to cover everyday expenses. While credit can provide short-term relief, it often creates longer-term challenges, especially for those already struggling financially. The rising reliance on credit underscores the need for better consumer protections, responsible lending practices, and increased awareness of free debt advice services.

Quote: “As borrowing rises, so does the importance of better safeguards and support for those who may find themselves in financial difficulty.”

?? Read the data

7. Campaigning for Renters’ Rights

Key Message: The Renters’ Rights Bill represents a significant opportunity to create a fairer rental market in the UK. By addressing issues such as unfair evictions, poor housing conditions, and unaffordable rents, the bill aims to improve the lives of millions of tenants. StepChange has been actively supporting this legislation as a critical step forward in tackling the financial challenges faced by renters.

Quote: “The Renters’ Rights Bill is a vital step towards creating a fairer rental market for tenants. It’s time for a better deal for renters across the UK.”

?? Read our Medium blog

8. Celebrating StepChange as an Outstanding Workplace

Key Message: StepChange was recognised as an Outstanding Workplace this month, reflecting the hard work, dedication, and passion of our colleagues. Creating a supportive and inclusive environment is vital for empowering our team to deliver life-changing debt advice to hundreds of thousands of clients each year. This recognition is a proud moment for everyone at StepChange.

Quote: “This award is a testament to the amazing work of our team, whose dedication changes lives every single day. We’re so proud to be recognised as an Outstanding Workplace.”

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In Summary

From the launch of a new report highlighting how debt takes hold early amongst young people, to the pressures renters and homeowners continue to face, financial challenges remain a persistent issue for many.

The Bank of England’s decision to cut interest rates was a welcome sign of progress in tackling inflation, but it also underlines the delicate balancing act needed to support households and stabilise the economy. Meanwhile, rising borrowing and the ongoing need for targeted energy support show there is still much to do.

At StepChange, we remain committed to ensuring that no one has to face financial difficulty alone. By shining a light on these issues and campaigning for meaningful change, we hope to drive forward solutions that make a real difference.

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