Biggest debts now amongst middle classes
October 6, 2008 · Print This Article
According to a recent report the biggest debts in the country are now held by middle class households, with the average middle class household owing around £50,000. The results of a recent study showed that many of those living in middle class areas such as London and the South East have borrowed four times as much money than those living in parts of the North West and Scotland. The study was carried out by the credit referencing agency, Experian.
The results of the survey went on to indicate that over the past year an individual’s debt has risen on average by around £2000. Experian used the 286 postal code districts in order to try and determine just how indebted the nation is. The conclusion that has been drawn from the study is that those living in areas with the highest house prices are those that have been able to run up more debt.
One official from the debt charity and advice service, Credit Action, stated: ‘Over the past 15 years Middle England has had it good but now they are feeling the squeeze. During the good times they have got used to borrowing money and having easy access to credit based on the mentality they should take on a lot of borrowing because their house prices will keep growing. It is these groups that are really now having to tighten their belts as they find commissions and overtime gets cut. Worryingly, I am afraid it’s is going to get a lot worse before it gets better.’
Over the past year a rising number of people and households have found it increasingly difficult to keep on top of their finances, and this is leading to severe financial problems for many.
An official from Experian said: ‘Those with the highest levels of borrowing are the most at risk and it is vital that they stay in control of their finances.’