Friday 15th of May 2009
Debt problems faced by borrowers on middle incomes have been predicted to continue rising.
Adam Clark, head of financial inclusion forum Transact, explained that the more affluent people who are being hit by difficulties tend to owe much higher amounts than those who have low incomes.
In addition, he observed that such borrowings are often "more complex".
"As redundancies increase and more households slip into mortgage arrears, we expect to see more people facing debt crises," said Mr Clark.
Those who are struggling to repay their debts may wish to seek IVA advice online, as solutions are available to help them reduce what they owe so it can be paid off in an affordable way.
Recent Consumer Credit Counselling Service figures indicated that people on middle incomes are finding it harder to pay off their debts, with 12 per cent of households contacting the charity for help earning more than £30,000 per year.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs could help men in debt avoid bankruptcy
