Rise of the middle-class debtor
The Consumer Credit Counselling Service (CCCS) has seen such an increase in the number of clients who earns substantially more than the typical indebted consumer that it has had to train its staff on how to deal with them.
National Debtline has published dating revealing that one in 12 clients earns more than £50,000 per year, whilst one in 50 earns over £100,000.
Furthermore, credit rating agency Experian reports that it has seen “high income families” (whose household income is more than £72,000) double their use of overdrafts over the last three years. Whilst in 2008 only 15 per cent of the group used overdrafts of £1,000 or more to get them through the month, the percentage has now more than doubled to 33 per cent.
This rise in the indebted middle classes has meant that some parents have had to consider taking their children out of private schools. More than half of clients helped by Business Debtline have properties, (most have mortgages on them) but many also have second properties which include buy-to-lets.