“These statistics point to some very worrying trends,” says Sabya Mukherjee, head of credit risk at the mobile banking app Monese. “Accumulating debt can have a serious and long-lasting impact on many aspects of your life and financial wellbeing.”

Sabya notes that the side effects can last beyond the crisis. “Higher amounts of debt could negatively impact your credit score. Landlords, utility companies and mobile phone providers use your credit score and history to make decisions on tenants and customers. If your score is low, these things become more expensive or even inaccessible.”

Organisations such as the National Zakat Foundation (NZF), a charity based in the UK that collects and distributes Zakat (a wealth tax that all Muslims must pay once a year) from and to the UK Muslim community, have also seen a significant rise in the number of people applying for hardship relief funds.

“So far this year we’ve seen a 65% increase in applications,” says Dr Sohail Hanif, CEO of NZF. The charity uses the Zakat donated to provide monetary support for those in need with four core funds: housing, education, hardship and work. Most people looking for help are ethnic minorities. “Young, single women with children now make up the largest proportion of applicants. We expect to see another increase ahead of the new school year as new uniforms and shoes are needed for children, and inflation causes more cost-of-living stress for families.”

How the cost of living crisis is disproportionally affecting ethnically diverse communities