New research suggest 8.8 million people in the UK live with serious debt problems, but only 17% of this group are currently accessing advice to help with it.

Money Advice Service’s latest report Indebted Lives: The Complexities of Life in Debt brings insights from a survey of over 5,000 UK adults, and provides a much clearer picture of the lives of those struggling with debt.

It reveals over 4m of people in this 8.8m group have been struggling to pay their bills for more than a year; while 48% of the group admit their debt prevents them buying the basics – this figure rises to 54% for families. The report sets out eight distinct groups – or segments – of people who are in serious debt. Families account for four of the eight segments (over 65% of the 8.8m group).

56% of people who are struggling with debt said it has a negative impact on their life and 74% admitted they are unhappy. But repaying debts is very important to the majority – 83% of the 8.8m group said they would like to pay off their debt as soon as possible.

The Service said it is concerned to find only 17% of all adults experiencing debt difficulties are currently seeking advice to help them deal with their debt, and over 40% said they don’t feel able to talk to their creditors about their debt problem.

Furthermore, 21% of over-indebted people do not actually recognise they are in debt. The study also found skills, knowledge and attitudes are key barriers to people choosing to access advice, but needs vary between segments.

Caroline Rookes, CEO of the Money Advice Service, said: “Millions of people could escape their spiral of debt by accessing free advice. We know it transforms lives and the sooner people access it the better – to take steps to improve their life for good.

“However, this study presents us with a fundamental challenge: the majority of people with debt difficulties do not seek advice. This is the first time we’ve had such a detailed understanding of the complexity of their lives.

“So now, armed with greater insights, we will work with advice agencies, creditors, and public bodies to help as many people as possible access free, high-quality, debt advice.”

The report found that more people struggle with debt in cities in the north of England and Northern Ireland. In the top five over-indebted areas over 40% of the total local adult population is struggling with debts – in the City of Kingston-upon-Hull, Nottingham, Manchester, Knowsley and Liverpool, respectively.