Middle-class families struggling with the biggest
debts in Britain, study reveals
Middle-class families have the biggest debts in the country with many borrowers owing more than £50,000, a study reveals.
Those living in wealthier areas such as London and the South-East have borrowed almost four times as much as those living in Scotland and parts of the North-West.
The report by the credit reference agency Experian also shows that an individual's debts have typically risen by more than £2,000 over the last year.
Experian holds records of what everyone owes on mortgages, personal loans, overdrafts, credit and store cards, and hire purchase agreements for items such as cars and televisions.
Experts warn families are most at risk from soaring borrowing costs. Keith Tondeur, of the advice service Credit Action, says: '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.”
The figures released from economists Grant Thornton show that personal debt in the UK increased by 7.3 per cent in the last year.
It is now greater than gross domestic product, the amount of money the UK makes from producing and selling goods.
Jim Hodgkins, managing director of the credit checking service CreditExpert.co.uk, which is part of 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.'
Many people walk through the doors of the UCKG HelpCentre every week in order to find help for their debt and financial problems. Individuals are able to receive free advice and counselling as well as a prayer to give them strength to change their financial status, or to overcome any reoccurring problems. As a result, many have seen their financial situation changing for the better. Some have been able to clear their debts completely, whilst others have been able to better control their money.
If you are in a financial rut, don’t despair; make sure you attend this Chain of Prayer on Monday at 7.30pm also at 7am, 10am and 3pm at your local UCKG HelpCentre.
