Middle classes now struggling with loan repayments
Whilst many people on lower incomes and bad credit have been struggling to meet loan and debt repayments for years, it seems that the global credit crunch has resulted in a new breed of consumers now struggling to make ends meet when it comes to their finances. According to a recent report more and more middle class consumers living in fairly affluent areas with their own homes are now struggling to keep on top of debt and loan repayments.
One dent charity, Transact, claims that there has been a rise of around 100% in people from affluent areas seeking debt related advice, whereas there has been a far smaller rise in the number of lower income people from poorer areas seeking advice, showing that the middle classes have been greatly affected over recent months. Officials stated that this figure shows that even the middle classes are being hard hit by the current difficult financial climate.
One official from Transact stated: “In the past it was almost uniquely people on benefits, people in social housing who went to debt advice agencies. Since the credit crunch started, they are seeing a big increase in professional people and homeowners coming to seek help, who have just been pushed over the edge and now can’t cope with their outgoings. These services now with the credit crunch are being overwhelmed by a whole new breed of debtor: middle-class people. But what that means is there is much less debt advice to go round.”
Another industry official said: “We’ve seen probably almost a 100% increase in clients. This time last year we were really quite quiet.” She added: “I’ve had at least two clients sit in front of me and tell me they would have killed themselves if they hadn’t found out we were here.”
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