Unexpected Costs Leave Many Households Vulnerable, New Research Finds
New data highlights the challenge of building financial buffers and resilience, with many UK households vulnerable to financial shocks
LONDON, 7 October, 2026 – Households experiencing financial difficulties are struggling to build the financial resilience needed to cope with unexpected costs, leaving many vulnerable to being unable to pay for expenses such as car repairs, broken appliances and emergency dental treatment. This is a key finding from research by StepChange Debt Charity, the UK’s largest debt advice and solutions charity, and supported by PRA Group, Inc. (Nasdaq: PRAA), a global leader in acquiring and collecting nonperforming loans.
Among the 1,600 StepChange clients surveyed, many said any savings they managed to build were quickly depleted by new expenses, leaving them vulnerable to setbacks.
The research identified healthcare costs as a growing source of financial pressure. Participants cited dental treatment, prescriptions and specialist healthcare as significant contributors to debt, with some delaying care because they could not afford it.
Additional cost-of-living research undertaken by PRA Group found that 29% of customers surveyed would be unable to afford an unexpected £350 expense, while a further 25% said they would need to borrow money to cover the cost.
PRA Group UK Country Operations Director Tim Kirk said, “The research highlights the importance of helping people achieve a sustainable financial recovery. That means not only making progress towards resolving their debt, but also building the resilience, confidence and skills needed to cope with unexpected costs and avoid future financial difficulties. The goal isn’t simply to get out of debt. It’s to help people stay out of debt.”
Financial resilience will be a key theme at the StepChange Connected Conference in Manchester, UK on 8 October. StepChange Debt Charity CEO Vikki Brownridge said, “Financial resilience is a strong indicator of long-term financial wellbeing. The research shows that people are striving for financial security, but we know this can be difficult to achieve. Helping people build the financial buffers needed to withstand future shocks is essential to sustainable recovery.”
These research findings highlight the importance of sustainable budgets, building savings and financial confidence as a key part of the debt advice journey. Building these foundations can play a vital role in protecting households from future financial difficulties.
About PRA Group
As a global industry leader with more than 30 years of experience, PRA Group, Inc. (Nasdaq: PRAA) specializes in acquiring and collecting nonperforming loans. PRA Group purchases portfolios from banks and other creditors and, through its subsidiaries, collaborates with customers to help them resolve their debt. Headquartered in Norfolk, Virginia, PRA Group has operations in the U.S., Europe, and other markets. For more information, please visit www.pragroup.com.
About StepChange
StepChange Debt Charity is the UK’s largest debt advice and solutions charity, helping hundreds of thousands of people every year to deal with their debts. Founded in 1993, StepChange supports people experiencing debt problems through telephone and online services, and campaigns for change to reduce the harm and stigma associated with debt.