Middle classes hit by debt

12/05/2009

Middle England is feeling the pinch of the credit crunch, new research has revealed.

Average debt levels of £100,000 are becoming commonplace for borrowers living in traditionally affluent areas, Transact has said.

The firm, which co-ordinates debt advice centres across the UK, has found that unemployment as a result of the recession is taking its toll on leafy suburbs.

Average debt levels in St Ives, Cambridgeshire have risen from £50,000 to £70,000, with a 130 per cent increase in demand for advice services noted in Cheshire, according to the Daily Mail.

John Franks, of Transact member Community Money Advice, explained the situation to the newspaper: "Clients with more than £100,000 of debt are no longer uncommon.

"We are seeing a higher percentage of middle and higher income clients who are struggling because of redundancy or the inability to manage their mortgage repayments, often alongside multiple credit card debts."

Total personal debt reached £1,459 billion in March, with the pressures of the recession thought to have added to this figure.

Tags; Debt Management and Banking,

Regional Debt Advice; Debt Help Cambridgeshire, Debt Help Cheshire, Debt Advice Cambridge,

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