CCCS concerned about low income family debt

Fri, 29 Jul 2011

The level of debt suffered by low income families is cause for concern, according to the Consumer Credit Counselling Service (CCCS).

It noted that the average unsecured debt of its clients earning up to £13,500 per year is £12,870, which for many is unsustainable.

The body explained that it is particularly worried by the debt to income ratio of 199 per cent of their annual income, which is much higher than those earning more money.

With the average unsecured debt for clients earning between £13,500 and £25,000 sitting at £19,547 - 124 per cent of their income - it is clear that lower earners are at greatly increased risk.

CCCS external affairs director Delroy Corinaldi said: "Unmanageable debt is a problem across all income groups but those on low incomes are particularly financially vulnerable, often finding it hard to make ends meet let alone deal with unexpected demands on their living costs.

"I worry about the high debt burden that many are carrying and the impact it has on their ability to keep their heads above water."

In other news, the Council of Mortgage Lenders recently criticised the Scottish government for not putting a stop to delays on repossessions north of the border.
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