Affluent Seeking Debt Advice

Fri, 20 Mar 2009

A growing number of affluent Britons are now seeking help with debt problems as the economic recession deepens, a leading debt charity has revealed.

The Consumer Credit Counselling Service (CCCS) found that 12 per cent of its 90,000-plus client base had a household income of £30,000 or more last year, an increase from 8.7 per cent in 2007.

The country’s biggest debt management charity said that debt problems are becoming more complex, harder to resolve and are now affecting a wider cross-section of society than in recent years.

It added that although people seeking help with debt issues are, on average, better off and owe less money than previously, they are still finding it harder to pay off their debts and balance their personal finances .

CCCS chairman, Malcolm Hurlston blamed a combination of rising unemployment, the slump in the housing market and rises in the cost of living for the current situation."

He explained: "When unemployment triggers a debt problem, the fall in income can leave the borrower struggling to service both mortgage and unsecured debts, while the fall in house prices and growth in negative equity, take away the option of selling to clear the mortgage ."

"As over-indebtedness becomes a problem for the more affluent, people who come to us are more likely to have mortgages and to lead complex financial lives."

"As a result, our task in providing best advice is bound to be more difficult and time consuming."

He added that almost half of those seeking help from the CCCS were homeowners .
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