You are here: Home - Credit Cards & Loans -

Middle class insolvencies on the rise

Written by:
Overall personal insolvencies dropped slightly in 2010, but increased among the middle classes, research has shown.

Credit reference agency Experian revealed that the biggest increase in insolvencies was among married, middle aged and middle class Britons, which make up just over 13% of UK adults.

This group accounted for 10.34% of personal insolvencies in 2010, 45 basis points higher than in 2009.

Young, single professionals and middle income earners had the second highest concentration of insolvencies in 2010.

This group, which accounts for 3.99% of UK adults, was responsible for 6.36% of insolvencies, up slightly on 2009 levels.

Experian reported that people reliant on benefits were the most likely to become insolvent, accounting for 8.1% of the total despite representing just 4.52% of the UK population.

Individuals on limited incomes, renting small flats from local councils or housing associations, saw its share of insolvencies fall by 21 basis points to 5.92% in 2010.

Simon Waller, head of collections at Experian in the UK and Ireland, said: “While it is encouraging to see a small reduction in personal insolvency levels across the UK, there are certain sections of society that continue to face ongoing difficulties.

“The recession hit different people and communities at different stages and some are finding it harder to shake off its effects.

“Lenders that understand their customers’ credit behaviour, how it might change in the future and can react rapidly to signs of financial distress are best placed to manage their books in a responsible and sustainable way.”

Tag Box

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Read previous post:
UK households ‘face debt crisis’

Rising unemployment and high inflation will lead to a debt crisis for thousands of UK households over the next five...