A new report commissioned by the Consumer Council has revealed a significant surge in debt levels across Northern Ireland, with individuals now dealing with debts 42% higher than in 2022/23.

The research, which explored Advice NI's debt advice service, found that the average debt per person in Northern Ireland has reached £12,989, a substantial increase from £9,136 in 2022/23, £7,085 in 2021/22, and £6,578 in 2020/21. This sharp upward trend indicates that people are accumulating considerably more debt before seeking assistance.

In the 2023/24 period, Advice NI's debt service, supported by the Department for Communities, assisted 3,385 individuals struggling with a total of £44.1 million in debt.

The research identified everyday living costs as the primary driver of increased financial strain, with housing, household bills, and high-interest loans taken out for essentials like food being the most common causes of debt.

Last year saw a concerning 46% rise in mortgage debt, with average arrears exceeding £58,000 per agreement. Rates arrears also increased, averaging £4,372 per agreement. While the number of people in rent arrears slightly decreased, the average amount owed to landlords rose by over £1,000 to £3,171.

Unprecedented increases in telecoms and energy costs have also led to significant rises in debts owed to broadband (up 367%), gas (up 112%), electricity (up 95%), and mobile phone (up 85%) suppliers. Alarmingly, nearly four in five survey respondents reported turning off their heating due to affordability issues. The report also highlighted a lack of financial resilience among those in debt, with two-thirds living below the poverty line, a third having minimal or no savings, and a fifth experiencing poor mental health.

Sinead Campbell, Head of Money, Debt and Quality at Advice NI, described the research findings as concerning, noting a clear trend of people falling into debt as the cost of living outpaces their income.

The report also revealed a worrying increase in high-interest lending, with Advice NI cases related to illegal lending or loan sharking rising by 16% since last year, and the average debt per client now exceeding £3,000. Advisers also reported a more frequent reliance on Buy Now Pay Later loans, store cards, and catalogue credit.

Furthermore, the research showed that two-thirds of people waited at least 12 months before seeking debt support from Advice NI, and almost half waited over two years. However, after receiving advice, 82% felt more in control of their finances, and 93% felt better able to manage their money.

Sinead Campbell stressed the importance of seeking help early, stating that Advice NI secured £855,871 in financial gains for clients last year, a 59% increase from the previous year. She emphasised that debt advice is a crucial lifeline for people struggling with debt.

Sean Breen, Head of Financial and Postal Services at the Consumer Council, highlighted the valuable insights provided by the reports commissioned with Advice NI and affirmed the Council's commitment to ensuring consumers receive appropriate debt solutions.

Advice NI and the Independent Advice Network have 65 members and 300 advisers across Northern Ireland, offering free, impartial, and confidential advice. Those needing support are encouraged to visit www.adviceni.net or call Freephone 0800 915 4604.