You are here: Home - Uncategorized -

Huge rise in extreme debtors

0
Written by:
23/10/2006

The number of people who have run up debts of over £100,000 has risen sharply. Paula John reports

According to the Consumer Credit Counselling Service (CCCS), 2.7% of those who looked to it for help and advice in 2005 owed more than £100,000 on top of any mortgage debt.

The figure may not look huge but is a substantial increase on the 1.4% of advice-seekers in 2005 who reported this level of debt.

The CCCS added that the incidence of young people struggling with unsecured or non-mortgage debt have also increased dramatically

The proportion of consumers aged between 18 and 24 turning to the service had risen from 6% during the early part of the decade to 11% by the end of 2005.

The amount of debt incurred by younger people leapt by 26% in two years from an average of £11,934 in 2003 to £15,079 in 2005.

However, the CCCS said debt levels were rising the most quickly among people approaching retirement and those already retired.

The amount of money owed by people aged 60+, who had contacted the group for help, has soared 25% during 2005 alone to average £33,568.

People aged between 40 and 59 still had the highest level of outstanding debt at an average of £34,456, and the number of people in this age group contacting the group for help was also increasing at a faster rate than for any other group.

Malcolm Hurlston, founder of the service, said: “The aim of this yearbook is to make use of the knowledge and experience of CCCS in improving our understanding of people in debt, alleviating their problems and anticipating future needs.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Entrepreneurs gaining ground

The number of entrepreneurs starting up new businesses has risen substantially in the first three months of the year, research...

Close