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8.2m in serious debt, 2.1m struggling with repayments
- Women 13% more likely to struggle with repayments -
(London, 02/08/2007) 8.2m British adults are in serious debt and 2.1m are struggling with repayments. That's according to the latest quarterly research released today by leading debt consultancy, Thomas Charles.
The research, commissioned every quarter by Thomas Charles and conducted by YouGov found that 18% of adults in Britain are in £10k or more of unsecured debt, equivalent to 8.2 million adults. This is a rise of 29% on the previous quarter and 30% on the previous year.
Men were found to be more indebted than women overall, with 18% reporting debts of at least £10k, compared with 15% of women.
Regionally, Scotland was revealed as the area with the highest proportion of indebted residents, with almost 1 in 5 (19%) reporting unsecured debts of £10k or more. The least indebted region is currently the North at 16%.
When respondents were quizzed regarding repayments, the picture was found to be equally bleak with 1 in 4 (25%) UK adults in over £10k reporting regular problems repaying their debts (quite frequently > every month) – an increase of 9% on the previous year.
In population terms, this means approximately 2.1 million adults in Britain are regularly struggling to meet their debt repayments.
Despite being the less indebted gender, women are currently 13% more likely to struggle with their monthly repayments than men – 27% of women in over £10k of unsecured debt report regular problems repaying their debts compared with 24% of the men.
London was revealed as the region with the highest proportion of residents struggling with debt , where 40% of those in £10k or more of unsecured debt report regular problems repaying their debts. This compares with 20% in the rest of the South and just 18% in Midlands and Wales.
James Falla, Director of Thomas Charles, commented:
“Over the past year, we have seen a sharp increase in the number of people who have taken on unsecured debt and are now struggling with repayments. These high levels of unsecured debt are clearly linked to the rise in interest rates over the last 12 months. A record rise in house prices, especially in London and the Southeast, has led to a growing discrepancy between mortgage payments and salaries.
The high pressure to maintain social and commercial status, particularly experienced by women, often goes hand in hand with high expenditure on the high street. Borrowers affected by the higher interest rates now are storing up debt problems for the future; instead of making cuts in their personal expenditure, they are taking on further unsecured loans and credit cards..”
Consumers wishing to contact Thomas Charles for advice on debt can do so via the company’s website (www.thomascharles.com) or by phone on 0800 072 5988.
CONSUMER DEBT:
Key stats
- 8.2 million adults in debt
- 2.1 million regularly struggling to meet their debt repayments.
- Men are more indebted than women overall
- Women 13% more likely to struggle with repayments
Top tips
- Don’t bury your head in the sand. Try working out your financial position using a budget sheet detailing all your incomings and outgoings.
- Consider transferring credit card debt to a 0% card while you deal with more pressing bills, such as any council tax or mortgage payments. But don’t use this as an excuse to run up more debt elsewhere, and beware of hefty transfer fees.
- Don’t take out other loans to pay off the original debt or use a consolidation loan. If you must do this, be disciplined and don’t use the new loan money for anything else.
- Talk to your creditors about structuring a realistic repayment plan.
- If you cannot do a repayment plan and you do not want to go bankrupt then try an IVA. Visit IVA.co.uk or call the IVA helpline (0800 197 48 38).
- If you want to consider bankruptcy then try the Citizens Advice Bureau (citizensadvice.org.uk)
- If mortgage rate rises are a problem, try working out how the interest rate rise will affect your mortgage using a rate rise calculator like the one on http://www.iva.co.uk/MortgageCalc.asp or http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml
Useful contacts
- Ends –
About Thomas Charles & Co Ltd
Thomas Charles & Co Ltd was set up in 2004. The Joint Managing Director, James Falla has 7 years experience in the insolvency and debt management industry and was involved in the set up of debt help specialists, Brookvale Group PLC, listed on PLUS Markets (formerly OFEX) since 2001.
Thomas Charles operates throughout England and Wales with its head office in Acton (West London). It has a personal, consultative approach to debt management. It focuses primarily on providing formal solutions for debt problems including Individual Voluntary Arrangements and Bankruptcy. However, it will also provide advice around informal debt repayment plans where appropriate. It works with third party Insolvency Practitioners around the UK.
About James Falla
James Falla has advised people who have personal debt problems since 1997. During this period he has helped 1000’s of people through the IVA process and worked with many others who have decided to undertake both Bankruptcy and informal Debt Management Plans.
James co-founded Thomas Charles (www.thomascharles.com) with William Berry in 2004 with the objective of providing clear impartial advice and solutions for people in serious debt. James has made numerous TV and radio appearances, including BBC1 News, BBC News 24, and Wake Up To Money
Notes to Editor:
All research was commissioned by Thomas Charles and Co and conducted by YouGov Plc.
July 2007 Survey: Total sample size was 2,115 adults. Fieldwork was undertaken between 16th - 18th July 2007. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). Population figures based on UK adult population of 45,731,000, according to ONS population data.
April 2007 Survey: Total sample size was 2,274 adults. Fieldwork was undertaken between 17th - 19th April 2007. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
January 2007 Survey 1 (*): Total sample size was 2,315 adults. Fieldwork was undertaken between 9th - 11th January 2007. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
January 2007 Survey 2 (**): Total sample size was 2,740 adults. Fieldwork was undertaken between 18th - 22nd January 2007. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
October 2006 Survey: Total sample size was 2,322 adults. Fieldwork was undertaken between 11th - 13th October 2006. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
Please find below some key tables from the research.
How much is your current outstanding unsecured (i.e., excluding mortgage) debt?
OVERALL
|
Oct-06 |
Jan-07* |
Apr-07 |
Aug-07 |
Less than £500 |
13% |
14% |
13% |
13% |
£501 to £1,000 |
6% |
6% |
6% |
6% |
£1,001 to £5,000 |
16% |
15% |
13% |
14% |
£5,001 to £10,000 |
10% |
9% |
11% |
9% |
£10,001 to £15,000 |
7% |
7% |
6% |
5% |
£15,001 to £20,000 |
5% |
5% |
3% |
5% |
£20,001 to £30,000 |
4% |
4% |
2% |
3% |
Over £30,000 |
4% |
4% |
3% |
5% |
Don’t know |
2% |
2% |
2% |
2% |
Prefer not to say |
7% |
7% |
11% |
9% |
I don’t have any debts |
28% |
28% |
29% |
31% |
Over £10k |
20% |
20% |
14% |
18% |
MEN
|
Oct-06 |
Jan-07* |
Apr-07 |
Aug-07 |
Less than £500 |
13% |
14% |
15% |
12% |
£501 to £1,000 |
5% |
6% |
6% |
5% |
£1,001 to £5,000 |
16% |
16% |
13% |
17% |
£5,001 to £10,000 |
11% |
7% |
13% |
9% |
£10,001 to £15,000 |
7% |
7% |
6% |
5% |
£15,001 to £20,000 |
5% |
5% |
3% |
5% |
£20,001 to £30,000 |
5% |
4% |
2% |
3% |
Over £30,000 |
5% |
4% |
3% |
5% |
Don’t know |
2% |
2% |
2% |
1% |
Prefer not to say |
7% |
6% |
9% |
7% |
I don’t have any debts |
25% |
29% |
27% |
29% |
Over £10k |
22% |
20% |
14% |
18% |
WOMEN
|
Oct-06 |
Jan-07* |
Apr-07 |
Aug-07 |
Less than £500 |
13% |
14% |
12% |
13% |
£501 to £1,000 |
6% |
6% |
5% |
6% |
£1,001 to £5,000 |
16% |
15% |
14% |
12% |
£5,001 to £10,000 |
10% |
10% |
9% |
9% |
£10,001 to £15,000 |
7% |
6% |
6% |
4% |
£15,001 to £20,000 |
4% |
5% |
3% |
5% |
£20,001 to £30,000 |
3% |
4% |
2% |
2% |
Over £30,000 |
3% |
3% |
2% |
4% |
Don’t know |
3% |
2% |
3% |
3% |
Prefer not to say |
6% |
8% |
13% |
11% |
I don’t have any debts |
30% |
28% |
31% |
32% |
Over £10k |
17% |
18% |
13% |
15% |
REGIONAL STATS - AUGUST 2007 ONLY
|
London |
Rest of South |
Midlands and Wales |
North |
Scotland |
|
Less than £500 |
12% |
14% |
11% |
13% |
15% |
|
£501 to £1,000 |
7% |
7% |
3% |
5% |
4% |
|
£1,001 to £5,000 |
15% |
14% |
15% |
14% |
12% |
|
£5,001 to £10,000 |
10% |
10% |
10% |
8% |
12% |
|
£10,001 to £15,000 |
4% |
5% |
5% |
5% |
4% |
|
£15,001 to £20,000 |
4% |
4% |
4% |
6% |
7% |
|
£20,001 to £30,000 |
3% |
1% |
4% |
3% |
4% |
|
Over £30,000 |
6% |
6% |
5% |
2% |
4% |
|
Don't know |
3% |
2% |
2% |
1% |
3% |
|
Prefer not to answer |
9% |
8% |
9% |
9% |
11% |
|
I don't have any debts |
29% |
29% |
32% |
34% |
24% |
|
Over £10k |
17% |
16% |
18% |
16% |
19% |
|
Do you ever have problems repaying your debts? (All with debts over £10k)
OVERALL
|
Oct-06 |
Jan-07* |
Apr-07 |
Aug-07 |
Yes, every month |
15% |
9% |
11% |
11% |
Yes, most months |
6% |
6% |
9% |
4% |
Yes, quite frequently |
9% |
8% |
5% |
10% |
Yes but only occasionally |
28% |
31% |
34% |
30% |
No, never |
41% |
44% |
38% |
43% |
Prefer not to say |
1% |
2% |
3% |
2% |
Regularly (Quite frequently > Every month) |
30% |
23% |
25% |
25% |
MEN
|
Oct-06 |
Jan-07* |
Apr-07 |
Aug-07 |
Yes, every month |
15% |
6% |
6% |
10% |
Yes, most months |
5% |
5% |
12% |
3% |
Yes, quite frequently |
7% |
6% |
5% |
11% |
Yes but only occasionally |
27% |
32% |
34% |
33% |
No, never |
46% |
49% |
42% |
43% |
Prefer not to say |
1% |
2% |
1% |
1% |
Regularly (Quite frequently > Every month) |
19% |
17% |
23% |
24% |
WOMEN
|
Oct-06 |
Jan-07* |
Apr-07 |
Aug-07 |
Yes, every month |
16% |
12% |
16% |
13% |
Yes, most months |
6% |
7% |
5% |
5% |
Yes, quite frequently |
11% |
11% |
6% |
9% |
Yes but only occasionally |
30% |
29% |
34% |
27% |
No, never |
36% |
39% |
34% |
43% |
Prefer not to say |
1% |
2% |
5% |
3% |
Regularly (Quite frequently > Every month) |
33% |
30% |
27% |
27% |
REGIONAL STATS - AUGUST 2007 ONLY
|
London |
Rest of South |
Midlands and Wales |
North |
Scotland |
|
Yes, every month |
19% |
11% |
7% |
10% |
11% |
|
Yes, most months |
3% |
5% |
5% |
3% |
3% |
|
Yes, quite frequently |
18% |
4% |
6% |
13% |
9% |
|
Yes but only occasionally |
12% |
40% |
39% |
33% |
19% |
|
No, never |
48% |
38% |
42% |
39% |
54% |
|
Prefer not to say |
0% |
2% |
2% |
3% |
3% |
|
Regularly (Quite frequently > Every month) |
40% |
20% |
18% |
26% |
23% |
|
Further charts, tables and analyses are available on request.
For further information, please contact:
Emily Cagle (PR121)
Tel: +44 (0) 20 7022 4897
Mob: +44 (0) 78 0955 5121
Beth Murray (PR121)
Tel: +44 (0) 20 7022 4953
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