Lancashire has the highest number of people in Great Britain who are only making minimum payments on their card balances, which will keep them in debt for the longest time.
According to research from Chiltern Debt Management, one in seven are only making minimum payments on their credit and store card commitments in Lancashire, compared to one in ten throughout the UK and just one in 19 in Yorkshire.
The research also found that Lancashire had the second lowest number in Britain paying their balances off in full each month, after Scotland.
And Lancastrians were significantly more likely to say their finances were seriously overstretched than their cross Pennine counterparts. One in 24 said that their finances were seriously overstretched, compared to one in 40 in Yorkshire and one in 45 across the UK.
Chiltern’s Joanne Gill says: “People in Lancashire need to understand that credit and store card balances generally have the highest rate of interest, so to only make minimum payments on these balances will prolong the time spent in debt.
“Already a higher than average number are expressing that their finances are seriously overstretched, and with recent interest rate rises this number could well increase.
“If people are finding that they are having difficulty servicing their debt they should take action sooner rather than later by seeking help or advice.”
Key Findings
• 14.6 per cent (one in seven people) in Lancashire said their finances were a struggle compared to 6.5 per cent (one in 15) in Yorkshire and 11 per cent (one in nine) throughout the UK.
• 4.1 per cent of people in Lancashire and 2.5 per cent of Yorkshire folk said their finances were seriously overstretched, compared to 2.2 per cent across the UK.
• 14.8 per cent of people (one in seven) in Lancashire are only making minimum payments on card balances each month, against 5.2 per cent (one in 19) in Yorkshire and 9.8 per cent (one in ten) across UK.
• 28.9 per cent of Lancastrians say they are paying their credit and store card balances in full, compared to 39.6 per cent of people in Yorkshire and 37.8 per cent across UK.
Chiltern Debt Management provides an informal solution to help people manage their debts. This involves working with the customer to produce a budget detailing income and necessary expenditure, like housing, food, clothes, bills and transport.
The money left over, once living costs have been accounted for, is known as the disposable income. This is shared proportionately between the customer’s creditors until the client becomes debt free or a change in circumstances means they are able to resume contractual payments to the creditors.
Research FindingsHousehold finances by gender
| Gender | Struggling | Over-stretched | Paying in full | Minimum payments |
| Female | 14.2% | 2.0% | 36.9% | 11.6% |
| Male | 7.7% | 2.5% | 38.8% | 7.8% |
| Average | 10.9% | 2.2% | 37.8% | 9.8% |
Household finances by age
| Age | Struggling | Over-stretched | Paying in full | Minimum payments |
| 16 – 24 | 11.2% | 0% | 23% | 7.9% |
| 25 – 34 | 10.6% | 1.7% | 37% | 11.5% |
| 35 – 44 | 11.4% | 3.1% | 43.8% | 10.7% |
| 45 – 54 | 14.8% | 4.9% | 42.3% | 13.7% |
| 55 – 64 | 12.5% | 2.2% | 44.8% | 9.8% |
| 65+ | 6.9% | 1.4% | 36.1% | 5.4% |
| Average | 11% | 2.2% | 37.8% | 9.8% |
Household finances by region
| Region | Struggling | Overstretched | Paying in full | Minimum payments |
| East Anglia | 11.2% | 0.7% | 48.4% | 12.1% |
| Lancashire | 14.6% | 4.1% | 28.9% | 14.8% |
| London | 13.2% | 2.0% | 45.8% | 7.7% |
| Midlands | 8.1% | 1.1% | 35.6% | 10.2% |
| North East | 6.2% | 0.8% | 43.6% | 9.4% |
| Scotland | 8.1% | 2.0% | 22.1% | 10.1% |
| Southern | 15.4% | 1.2% | 42.7% | 10.6% |
| Wales | 9.7% | 3.9% | 36.2% | 6.9% |
| Yorkshire | 6.5% | 2.5% | 39.6% | 5.2% |
| Average | 11% | 2.2% | 37.8% | 9.8% |