Chiltern Debt Management » Blog – Chiltern Press

Welsh finances seriously overstretched

Nathan Cameron — Sat, 25 Jul 2009 11:12:36 +0000

Residents of Wales are among the most likely in the UK to be seriously overstretched financially according to the latest research from leading debt management provider Chiltern.

Nearly one in 25 people who live in Wales say their finances are seriously overstretched, almost double the UK average and second only to Lancashire.

However, Welsh people are also among the least likely to pay off only the minimum balance on their credit or store cards each month – this means they are making more effort to pay off their credit card bills than in many other areas of the country.

Chiltern’s Joanne Gill says: “The vast majority of people in Wales are fairly comfortable with their finances but for a significant minority things are a struggle and for one in 25 finances are causing real problems.

“With more interest rate rises predicted their situation looks set to get worse, but there is a way out and people should seek help if they find that paying their debts each month is eating into their necessary expenditure, like housing, food and travel.

“The worst thing people can do is ignore money worries and the longer people bury their head in the sand the more they will end up owing.”

Key Findings

• One in 25 people (3.9 per cent) in Wales said their finances were seriously overstretched second to Lancashire (4.1 per cent) and against a UK average of one in 45 (2.2 per cent).
• Only one in 14 (6.9 per cent) people in Wales pays off the minimum balance on store cards each month, second to Yorkshire where one in 19 (5.2 per cent) pay off the minimum each month. Across the UK the average is one in 10 (9.8 per cent)
• Welsh folk are slightly less likely than average to pay off their credit and store card balances in full each month, 36.2 per cent against an average of 37.8 per cent and just 22.1 per cent in Scotland.

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 Findings

Household 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%

Welsh finances seriously overstretched is a post from: Chiltern Debt Management

Chiltern Debt Monitor December 08

Nathan Cameron — Tue, 09 Dec 2008 10:49:35 +0000

The average level of debt owed by a customer on a Chiltern debt management plan is down by over £1000 pounds since the beginning of 2008 and currently stands at its lowest amount since the Chiltern Debt Monitor started in 2007.

However people can afford to repay less than they could at the beginning of the year, despite overall debt levels dropping, as the amount customers can afford to offer creditors each month is also down to just 25 per cent of the original contractual payment.

One of the main factors of this is the increase in monthly living costs, partially due to rises in food, energy and petrol costs which have increased customer’s monthly outgoings (up by £22 each month from January ‘08), and reduced the amount of disposable income by 5 per cent (down £11 each month since January ‘08).

Chiltern’s Donna Leigh says: “This year has seen a steady reduction in the total amount of debt owed, but it is now taking someone on a managed account an extra 5 months to repay what they owe, compared to at the beginning of the year.

“This is mainly because the living costs have squeezed household finances harder and reduced the amount of money available to repay debts each month.

“The reduction of available money each month then causes people to turn to credit to pay for essential items, which causes a downward spiral of debt – as each month sees them going further into the red.

“Anyone experiencing financial difficulties needs to readjust spending to more realistic levels and seek advice sooner rather than later from an Office of Fair Trading code approved debt solutions provider, like Chiltern.”

Chiltern Debt Monitor December 08 is a post from: Chiltern Debt Management

Chiltern gets stamp of approval from the OFT

Nathan Cameron — Tue, 02 Dec 2008 10:53:35 +0000

Debt specialist Chiltern has been given the stamp of approval by the Office of Fair Trading (OFT), through its trade body, the Debt Managers Standards Association (DEMSA).

They have been recognised by the OFT’s Consumer Code Approval Scheme – an initiative to promote and safeguard consumer’s interests by identifying, monitoring and rewarding better business practice.

Chiltern are one of only four DEMSA members to be granted permission to display the OFT code approval logo – granted only after members have proved they continually meet the OFT’s high standards over a number of years.

Part of the process involves an annual independent audit and review of all working practices and procedures. It includes mystery shopping, monitoring calls, complaints and analysing anonymous customer satisfaction surveys.

Chiltern’s Donna Leigh says: “We started the process of gaining OFT approval six years ago, when we formalised the high standards of customer service we’ve always offered, by becoming a founder member of DEMSA.

“Receiving OFT accreditation is a huge compliment and recognises the consistent high quality of service provided to customers who are struggling with their finances.

“We’re delighted our customers and potential customers will now be able to clearly see us apart from the majority of companies in our marketplace. It shows that Chiltern is a name that anyone struggling with debts can trust.”

Chiltern gets stamp of approval from the OFT is a post from: Chiltern Debt Management

Yorkshire folk financially better off than people in Lancashire

Nathan Cameron — Fri, 25 Jul 2008 11:59:07 +0000

Yorkshire folk are among the most financially comfortable in the UK and half as likely as people in Lancashire to struggle with their money according to research from leading debt management provider, Chiltern.

Only one in 15 Tykes said their finances were a struggle compared to one in seven in Lancashire and one in nine nationally.

Nearly nine out of 10 people in Yorkshire said their household finances were comfortable or very comfortable, compared to just one in seven in neighbouring Lancashire and one in eight across the UK.

The research also revealed that Yorkshire folk are the least likely in the UK to make only the minimum monthly payments on their credit and store cards, one in 19 against one in ten throughout the UK.

Worryingly though, the number of people who considered themselves to be seriously overstretched was slightly above average, which reveals there may be an underlying problem.

Chiltern’s Joanne Gill says: “On the whole, Yorkshire people are handling their personal finances well, however the number of people declaring they are seriously overstretched is cause for concern.

“As the effects of the recent interest rate rises start to be felt this number could well increase as people, who were previously comfortable, find they have less money in their pockets each month after mortgage and loan repayments.

“If people in Yorkshire start to find it difficult to keep up with their monthly commitments, it’s best to seek advice or help sooner rather than later. Unfortunately ignoring the problem doesn’t make it go away.”

Key findings

2.5 per cent (one in 40) of Yorkshire folk said their finances were seriously overstretched compared to 4.1 per cent (one in 24) in Lancashire and 2.2 per cent (one in 45) nationally.

Research Findings

Household 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%

Yorkshire folk financially better off than people in Lancashire is a post from: Chiltern Debt Management

Chiltern Debt Monitor April 08

Nathan Cameron — Thu, 24 Apr 2008 10:54:11 +0000

The average level of debt of someone on an informal debt management plan has fallen below the £26,000 mark for the first time and is now at its lowest amount since the Chiltern Debt Monitor started.

Chiltern Debt Monitor April 08

Average level of debt: £25,945
Average age of debtor: 44
Yearly gross income: £23,444
Male: 42%
Female: 58% Average number of creditors: 8
Affordable payments as a % of contractual payments: 25%
Monthly living costs: £1086
Monthly disposable income: £225.36
No of months to be debt free: 146
The average level of debt of someone on an informal debt management plan has fallen below the £26,000 mark for the first time and is now at its lowest amount since the Chiltern Debt Monitor started.

This average total debt amount is down by almost £400 since the beginning of the year, which shows that customers are dealing with their debts sooner and preventing their debts from escalating further than previously.

However people’s disposable incomes are dropping, with household expenditure rising, which suggests that household finances are still under increasing pressure. Already this year we have seen fuel, food and energy increases putting further strain on already overstretched budgets.

Credit is becoming increasingly more difficult to secure amidst the global credit crunch, with credit card holders seeing their limits reduced and homeowners having reduced mortgage options.

The Council of Mortgage Lenders (CML) has indicated that there have been 30 per cent fewer home loans offered so far this year than the same time last year, and many lenders have pulled the plug on their 100 per cent deals.

Chiltern’s Nathan Gladwell says: “The current climate is encouraging more people who are struggling with their finances to seek alternative options, as credit becomes harder to get hold of.

“Add to that the rises in food, fuel and energy costs and it’s no surprise that most people are feeling the pinch in their pockets.

“People struggling with their finances need to readjust their spending to more realistic levels and be open to alternative options, like informal arrangements.
Options like debt management can offer a valuable short-term solution whilst debts are brought under control, and they ensure that debts are prioritised so mortgage or rent and utility bills are accounted for first.”

The Chiltern Debt Monitor is a regular analysis of Chiltern Debt Management’s database of live customers to determine the profile of debt and debtors in the UK.

Chiltern Debt Monitor April 08 is a post from: Chiltern Debt Management

Chiltern Debt Monitor January 08

Nathan Cameron — Tue, 12 Feb 2008 12:11:43 +0000

Since August 2007 the average yearly income of someone on an informal debt management plan has risen by nearly £3,000 from £20,540 to £23,432 while debt levels have decreased by more than £300 from £26,662 to £26,344.

Six month review
Average level of debt: £26,344

Average age of debtor: 44

Yearly gross income: £23,432

Male: 43%

Female: 57% Average number of creditors: 8

Affordable payments as a % of contractual payments: 26%

Monthly living costs: £1,083

Monthly disposable income: £228

No of months to be debt free: 147
Since August 2007 the average yearly income of someone on an informal debt management plan has risen by nearly £3,000 from £20,540 to £23,432 while debt levels have decreased by more than £300 from £26,662 to £26,344.

Other notable changes over the six-month period include an increase in the number of men on debt management programmes, from 42 per cent to 43 per cent, and a rise in the average age of a debtor from 43 to 44 years old.

The number of months for someone on a debt management plan to be debt free has remained above 12 years throughout the six months, fluctuating between 145 and 147 months.

And the amount people can afford to pay creditors as a percentage of their contractual payment has remained constant at just 26 per cent.

Chiltern’s Joanne Gill says: “Our figures show that over the last six months the average yearly income of our clients has risen by over 14 per cent while the average debt has fallen by 1.2 per cent.

“This suggests people who earn more and owe less are being forced into seeking help to manage their finances because of a number of conspiring factors.”
Credit Crunch

The credit crunch has reduced the availability of credit to borrowers with a tarnished credit history which means stretched borrowers have to look for an alternative to consolidation to help them meet their contractual repayments.

Increased household bills

Over the last year household bills, or priority payments, have risen significantly.

• The Council of Mortgage Lenders figures show that mortgage payments as a percentage of income rose from 16.3 per cent in November 2006 to 18.8 per cent in November 2007.
• Combined gas and electricity bills have risen by 16.2 per cent taking the average yearly household bill from £908.49 to £1055.76 (1).
• The average family’s food shopping bills has risen by 12 per cent or £750 over the last year (2).
• Council tax is set to rise by an average of 4 per cent to £1,373 for an average Band D property for the 2008/2009 year. (3)
“Nearly half a million people have missed a mortgage payment within the last six months (4) and with the reduced level of available credit for people with imperfect histories, household finances are taking a battering.

“People who are struggling with debt repayments need to be open to different ways of managing their budget, like debt management. It makes sure people have the money they need to pay their mortgage, council tax, utility and food bills.”

An informal debt management programme offers a flexible agreement between the creditor and debtor which ensures the creditors get a fair proportion of their debt repaid while the debtor is able to pay their priority bills and for food.

Chiltern makes payments to more than 1300 creditors each month on behalf of its clients and has a broad spectrum of customers ranging from a vicar to a tattooist.

The Chiltern Debt Monitor is a regular analysis of Chiltern Debt Management’s database of live customers to determine the profile of debt and debtors in the UK.

Chiltern Debt Monitor January 08 is a post from: Chiltern Debt Management

Chiltern Debt Monitor November 07

Nathan Cameron — Tue, 12 Feb 2008 10:54:48 +0000

The November Chiltern Debt Monitor reveals that over the last month the percentage of wages that debtors can afford to offer creditors has fallen by one per cent to 17 per cent, but the amount they are contractually obliged to pay has remained the same at 67 per cent.

Chiltern Debt Monitor November

Average level of debt: £26,340

Average age of debtor: 43

Yearly gross income: £23,504

Male: 42%

Female: 58% Average number of creditors: 8

Affordable payments as a % of contractual payments: 26%

Monthly living costs: £1,087

Monthly disposable income: £228

No of months to be debt free: 145

This means that, without a debt management plan, debtors would be forced to pay £881 towards their unsecured debts leaving just £434 each month for housing, food, travel and clothing costs.

Debtors can actually only afford to offer creditors £228 a month, which is just 26 per cent of their contracted amount.

Chiltern’s Joanne Gill says: “Our research shows that six million people in the UK are struggling with their finances and one million admit to being seriously overstretched (4), these figures demonstrate that predicament very clearly.

“Debt is a source of constant stress for many families as they juggle their credit commitments to maintain their minimum payments and spiral further into debt. It is particularly pronounced at this time of year as people feel under pressure to enter into the festive spirit whether or not they can afford to.

“But there is a way out for families in this position, an informal debt management plan provides the structure for people to repay their creditors at an affordable level and only after their living expenses have been deducted from their wages.”

Living costs in November were slightly higher than those in October at 83 per cent of income compared to 82 per cent a month earlier.

Chiltern makes payments to more than 1300 creditors each month on behalf of its clients and has a broad spectrum of customers ranging from a vicar to a tattooist.

The Chiltern Debt Monitor is a regular analysis of Chiltern Debt Management’s database of live customers to determine the profile of debt and debtors in the UK.

Chiltern Debt Monitor November 07 is a post from: Chiltern Debt Management

Chiltern Debt Monitor October 07

Nathan Cameron — Fri, 21 Dec 2007 10:57:00 +0000

The impact of a tightening credit market and interest rate rises is creating a greater interest in debt management programmes but too many consumers are still struggling with their debts…

Average level of debt: £26,537 Average age of debtor: 43 Yearly gross income: £23,416 Male: 42% Female: 58% Average number of creditors: 8 Affordable payments as a % of contractual payments: 26% Monthly living costs: £1,078 Monthly disposable income: £229 No of months to be debt free: 146

Over the last month the time it will take the average person on an informal debt management plan to repay their debts has risen by one month to 12 years and two months, and monthly living expenses have fallen by £5.

The yearly salary has dropped by £119, the total debt has gone down by £71 and the amount they can afford to repay each month has fallen by £2 a month.

However, the percentage of contractual payments that are affordable by the debtor and the amount they owe as a percentage of their yearly salary have remained static at 26 per cent and 113 per cent respectively.

Chiltern’s Joanne Gill says: “The impact of a tightening credit market and interest rate rises is creating a greater interest in debt management programmes but too many consumers are still struggling with their debts and not fully aware of the options open to them when they can no longer afford to pay their unsecured creditors.

“By entering into a debt management programme the vast majority of interest and charges added to the debt each month, when people miss their payments, is stopped and a line is drawn under it so they can start repaying what they owe at an affordable level.

“It also provides debtors with the peace of mind that they can afford to keep up their mortgage payments and household bills as these debts take priority over their unsecured debt repayments.”

Living costs in October were equal to those in September at 82 per cent of income, which means a client can only afford to pay 18 per cent of their take home pay to creditors. Contractual payments to creditors as a percentage of income were 67 per cent.

Chiltern makes payments to more than 1300 creditors each month on behalf of its clients and has a broad spectrum of customers ranging from a vicar to a tattooist.

The Chiltern Debt Monitor is a regular analysis of Chiltern Debt Management’s database of live customers to determine the profile of debt and debtors in the UK.

Chiltern Debt Monitor October 07 is a post from: Chiltern Debt Management

Men 20% deeper in debt than women

Nathan Cameron — Wed, 24 Oct 2007 10:57:43 +0000

Men seeking help to manage their finances have 20 per cent more debt than their female counterparts

Men seeking help to manage their finances have 20 per cent more debt than their female counterparts and can afford to repay less to their creditors each month as a percentage of their contractual debt repayments according to Chiltern.

The leading debt management company’s figures show that, on average, a man with an informal debt management programme is slightly older than a female who asks for assistance to make their debt repayments affordable. And it will take men 22 months longer than women to become debt free.

Men also spend more than women each month covering their household outgoings and earn more than women.

Chiltern’s Joanne Gill says: “The debt profile of men and women highlights the really difficult and unsustainable position both sexes are in when they turn to a company like Chiltern to help them manage their debts.

“We know that by the time people reach us they have struggled on their own to manage debts for a number of years, getting caught in a cycle of borrowing to pay off creditors and then spending on credit again because they cannot afford to pay for the things they need in life, like their rent or mortgage and food.

“People who use a debt management plan aren’t trying to avoid repaying their debts, or get a large percentage of them written off by creditors, they’re fulfilling their responsibility to pay what they can and communicate with creditors to ensure both parties are being treated fairly.”

Key Findings

• On average a male on an informal debt management plan owes £29,914 to 7.8 creditors compared to a female on a debt management plan who owes £23,946 to an average of 8.1 creditors.
• Women enter into an informal debt management plan two years before their male counterparts. The average age of a female client is 43 compared to 45 for men.
• On average a man on an informal debt management plan will take 158 months to be debt free against 136 months for a woman.
• The average monthly contractual payment a woman is obliged to make to her creditors is £86.46 compared to £102.81 for men.
• The amount a woman can afford to repay her creditors is £22.73 a month, 26 per cent of the contractual payment, against £26.13 for a man, 25 per cent of his contractual payment.
• The average salary of a man on a debt management plan is £24,627 against £22,530 for women.
• The average monthly outgoings of a man on a debt management plan are £1,165.68 compared to £1,014.66 for women.

Men 20% deeper in debt than women is a post from: Chiltern Debt Management

Chiltern Debt Monitor reveals debtors can only afford 26 per cent of contractual payments

Nathan Cameron — Tue, 25 Sep 2007 11:03:03 +0000

Chiltern Debt Monitor September 07

Average level of debt: £26,608

Average age of debtor: 43

Yearly gross income: £23,535

Male: 42%

Female: 58%

Average number of creditors: 8

Affordable payments as a % of contractual payments: 26%

Monthly living costs: £1,083

Monthly disposable income: £231

No of months to be debt free: 145

The first Chiltern Debt Monitor reveals that, on average, debtors who enter into an informal debt management plan can only afford to pay 26 per cent of their contractual payments to creditors.

It also shows that by the time debtors seek help with their credit commitments they have built up unsecured debts equal to 113 per cent of their gross yearly income, which will take more than 12 years to repay at an affordable level for the debtor.

Chiltern Debt Management, head of marketing, Joanne Gill says: “People who enter into an informal debt management plan can only afford to pay 18 per cent of their net income to service their unsecured debts but are contractually obliged to pay out 69 per cent of take home pay – a completely untenable situation whichever way you look at it.

“Creditors are generally seen as the bad guys when a person cannot afford their debts. But our experience is that they treat customers with genuine difficulties sympathetically and positively and recognise that by engaging an informal debt management service the debtor wants to repay their debt.”

Nick Pearson, national money advice co-ordinator, for advice UK says: “The statistics published by Chiltern clearly show their customers are generally people who earn more, and have a greater level of debt, than those who normally seek advice from the not for profit or charitable organisations, like our members.

“It also demonstrates that there is a clear need for choice and a mixed economy of free and fee charging debt advice providers, particularly with all indicators suggesting the numbers of people struggling with their debts is going to grow substantially.”

The average age of someone who enters an informal debt management plan is 43 and there is a slight bias towards women in the figures. This is largely down to family breakdown where women remain the primary carers for any dependents who were reliant on the former family partnership.

Essential expenditure, which includes mortgage or rent payments, utility bills, council tax, travel to and from work and food, accounts for 82 per cent of the net income of a debtor on an informal debt management plan.

The Chiltern Debt Monitor is a regular analysis of Chiltern Debt Management’s database of live customers to determine the profile of debt and debtors in the UK.

Key indicators of debt stress

25 per cent or more of income paid to service unsecured debt repayments
Four or more credit commitments
Using credit to pay for the necessities in life, like food or travel
Paying only minimum balances on credit and store cards
History of consolidation and further credit spending

What to do if you believe you are at risk of debt stress

Draw a line down the middle of a piece of A4 paper
Head one side income the other expenditure.
On the income side put monthly salary, benefits, maintenance payments and any other regular payments you receive.
On the expenditure side put your monthly rent or mortgage payments, any secured loan costs, car and household insurance payments, council tax and car tax payments, utility bills, food bills, travel costs and any maintenance payment – ignore any credit repayments at this stage
Add up both columns and take your total expenditure from your total income to give you your disposable income.
Towards the bottom of your expenditure column list all of your monthly unsecured credit commitments, personal loans, store cards, credit cards and catalogue bills and add up the total cost of these
Deduct the total of your unsecured credit commitments from your disposable income.
If you have a positive balance you can afford your credit commitments.
If you have a negative balance you cannot afford to pay your unsecured credit bills and should seek help.

The informal debt management process

Chiltern Debt Management provides a bespoke service to people who are unable to meet the contractual repayments on their unsecured debts.

It works with the client to produce income and expenditure details based on the guidelines devised by the Money Advice Trust, which are accepted by creditors.

If the financial statement shows the debtor does not have enough income to pay their priority debts, living costs and unsecured debt repayments, Chiltern will share that information with creditors and offer a proportion of the disposable income, which equates to their proportion of the total debt, in regular payment.

The client makes one monthly payment to Chiltern which distributes the money to the creditors.

Chiltern Debt Monitor reveals debtors can only afford 26 per cent of contractual payments is a post from: Chiltern Debt Management

Britain’s overindebted in denial

Nathan Cameron — Mon, 06 Aug 2007 11:04:01 +0000

Nearly four million Britons are officially overindebted

Nearly four million Britons are officially overindebted (2) but two-thirds of them are in denial according to research from leading debt management specialist Chiltern.

Its research revealed that one in 16 people in the UK spends more than 25 per cent of their wages paying off unsecured debts each month – the level at which Government guidelines say people are overindebted (3) – but only one in 45 people questioned admitted their finances were seriously overstretched.

By age, the 35 to 44 age group are the most overindebted and across the country East Anglians are the most likely to be deluded about their finances.

Less than one in 100 East Anglians say their finances are seriously overstretched but one in nine pays more than a quarter of their income to service unsecured debts – the highest number anywhere in the country.

In contrast, Lancastrians and people in Wales are the most realistic about their finances with a much smaller difference between the number of people who say they are overstretched and the number who are officially overindebted.

Overall, men are slightly more likely than women to be overindebted but also keener to admit it, which suggests women have a greater tendency to be in denial about their finances.

Chiltern’s Joanne Gill says: “There are lots of people who are officially overindebted, but two-thirds of them don’t think they have a problem.

“Unfortunately debts don’t go away, they need to be repaid and ignoring them will just make the situation worse.

“Anyone who is paying a quarter of their income to service unsecured debts should get help to put those repayments on a sustainable footing before the situation gets worse.

Key Findings

• One in 16 people (6.4 per cent) in UK said more than a quarter of their income is taken up by loan and card repayments – 6.8 percent of men against 6 per cent of women.
• Only 2.2 per cent of UK residents admitted their household finances were seriously overstretched. 2.5 per cent of men compared to 2 per cent women
• One in nine 35-44 year olds (10.9 per cent) say they are paying more than a quarter of their monthly income to service credit and loan repayments, compared to 3.2 per cent of pensioners (over 65 year olds) and 3.4 per cent of 18-24 year olds.
• In East Anglia just one in 143 people (0.7 per cent) consider themselves to be seriously overstretched, yet the highest number anywhere in the country one in nine (11.8 per cent), is paying more than a quarter of their wages to service their unsecured debt.
• In Lancashire and Wales one in 24 (4.1 per cent) and one in 26 (3.9 per cent) of people consider themselves seriously overstretched and one in 19 (5.2 per cent) and one in 21 (4.7 per cent) respectively are paying more than 25 per cent of their income to pay their unsecured debts.

Britain’s overindebted in denial is a post from: Chiltern Debt Management

Southerners most likely to struggle with their finances

Nathan Cameron — Wed, 25 Jul 2007 11:58:29 +0000

Southerners are more likely than any other region of Great Britain to struggle with their household finances according to research from Chiltern Debt Management.

One in six Southerners said their finances were a struggle, more than double the number in the North East (one in 16) and compared to a UK average of one in nine.

The research also revealed that Southerners are more likely than average to make only the minimum payments towards their credit or store card balances each month, and one of only three regions in the UK where people admit they are already missing some card payments.

However, residents of the South were more than three times less likely to say their finances were seriously overstretched, (one in 83) than those who live in Lancashire (one in 24), and against a UK average of one in 45.

Chiltern’s Joanne Gill says: “Southerners are among the people struggling the most with their debt in this country. They are paying minimum balances, which means more interest and charges, and that they will be in debt longer. And they admit to missing some payments on their credit and store cards, which will again lead to higher charges and mean it takes longer to pay off the debt.

“While there are currently a lower number of Southerners than average who say they are seriously overstretched, it’s clear there is a higher number than anywhere else in the country who are in danger of finding themselves overstretched if, as widely expected, we see further interest rate rises this year.

“If people are having difficulties there is help available and people should seek it out and know that they’re not alone, more than 6m (1) people in the UK are already struggling and the situation looks set to get worse.”
Key Findings

• 15.4 per cent of Southerners (one in six) said their finances were a struggle compared to 13.2 per cent (one in eight) in London and 11 per cent (one in nine) throughout the UK.
• 10.6 per cent (one in nine) of Southerners are only making minimum payments towards credit and store card balances each month against 14.8 per cent in Lancashire (one in seven), 5.2 per cent (one in 19) in Yorkshire, and a UK average of 9.8 per cent (one in 10).
• 1.2 per cent (one in 83) of Southerners said their finances are seriously overstretched compared to a UK average of 2.2 per cent (one in 45).
• 0.7 per cent of residents in the South admit they have missed some credit and store card payments. The only other regions in the UK where people said they had missed payments were the Midlands and Lancashire, 2.7 per cent and 0.8 per cent respectively.

Research Findings

Household 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%

Southerners most likely to struggle with their finances is a post from: Chiltern Debt Management

North East: lowest number struggling financially

Nathan Cameron — Wed, 25 Jul 2007 11:11:48 +0000

Residents in the North East are half as likely to struggle with their finances than the UK average according to research from Chiltern Debt Management.

Just one in 16, the lowest in the UK, said their finances were a struggle, against one in six in the South and one in nine throughout the UK.

However, the research also discovered that one in 11 people are only making the minimum payments each month to their credit and store card balances, which will prolong the time spent in debt.

Nevertheless, people in the North East were more likely to say their household finances were comfortable than anywhere else in the country.

Almost eight out of ten people said that their finances were in a comfortable state, compared to six in ten in Lancashire, seven in ten in Yorkshire and a UK average of seven in ten.

Chiltern’s Joanne Gill says: “On the surface it would appear that residents in the North East are dealing with their finances well, but one in 11 people are still only making minimum payments to credit and store cards, which means the position could quickly change.

“People who say they are comfortable with their finances but who are only paying the minimum required amount, could find that the debt they owe is not reducing and with rising interest rates it could prove costly.

“It’s much better to pay off as much as possible on credit and store cards each month, as these generally have the highest interest rates, and seek help or advice if you find that you’re having difficulties.”

Key Findings

• 6.2 per cent (one in 16) of people living in the North East said their household finances were a struggle, compared to 15.4 per cent (one in six) in the South and 11 per cent (one in nine) across UK.
• 79.5 per cent (eight in 10) of North East residents said their finances were comfortable, against 64.5 per cent (six in 10) in Lancashire and 69.7 per cent (one in seven) throughout the UK.
• 9.4 per cent (one in 11) of North East residents said that they are only making minimum payments to their credit and store cards each month against 9.8 per cent (one in 10) UK average.

Research Findings

Household 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%

North East: lowest number struggling financially is a post from: Chiltern Debt Management

Scots say finances healthy but are they?

Nathan Cameron — Wed, 25 Jul 2007 11:10:56 +0000

Scots are less likely to struggle with their money than elsewhere in the UK, but the least likely to pay off their credit and store card debts in full each month, according to research from Chiltern Debt Management.

Only one in 12 Scots says their finances are a struggle compared to a UK average of one in nine and one in ten in Wales.

But Scots are the least likely of anywhere in the UK to pay off their credit and store card balances in full each month, and more likely than average to stick to making minimum monthly payments.

Nevertheless, one in eight Scots claims to be very comfortable with their finances, slightly higher than the nationwide average and almost double the number of Londoners who said they are very comfortable.

Chiltern’s Joanne Gill says: “Scots seem to think they’ve got their finances under control but our research suggests they could be storing up trouble for the future.

“Less people than elsewhere in the country say they are struggling or seriously overstretched, but a higher number than average only pay off the minimum balances on their credit and store cards each month – this means they will be in debt longer and pay higher charges.

“And only one in five pays off their credit card bill in full each month, this compares with one in two in East Anglia and an average of one in three across the country.

“Recent interest rate rises will hit people who are borrowing on credit and store cards and not repaying their balances quickly the most. If these debts become difficult to manage, Scots should seek help to make sure they don’t end up using credit to pay for the day to day necessities of life.”

Key Findings

• One in twelve Scots says their finances are a struggle (8.1 per cent) compared to a UK average of one in nine (11 per cent) and one in ten in Wales (9.7 per cent).
• Only one in five (22.1 per cent) Scots pays off their credit and store card balances in full each month, less than half the number in East Anglia (48.4 per cent) and compared to a UK average of one in three (37.8 per cent).
• 2 per cent of Scots say their finances are seriously overstretched compared to 2.2 per cent across the UK.
• 12.6 per cent of Scots say they are very comfortable with their finances compared to 7.1 per cent of Londoners and an average of 11 per cent.

Research Findings

Household 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%

Scots say finances healthy but are they? is a post from: Chiltern Debt Management

Midlanders most likely to miss card payments but deny they’re overstretched

Nathan Cameron — Wed, 25 Jul 2007 11:10:06 +0000

Midlanders are the most likely in the UK to miss their credit or store card commitments, but among the least likely to say their finances are “seriously overstretched” according to research from Chiltern Debt Management.

Over four times the UK average, one in 37 compared to one in 167, declared that they had missed some of their payments to credit and store card providers.

One in ten Midlanders, slightly above the UK average, also regularly paid only the minimum amount towards their credit or store card balances.

Despite this only one in 12 said that their finances were a struggle, compared to a UK average of one in nine, and just one in 90 said that they were seriously overstretched, compared to one in 45 throughout the UK.

With recent interest rate rises these numbers could soon be on the increase as more people struggle to manage their household finances against rising debt repayments.

Chiltern’s Joanne Gill says: “The recent interest rate hike has meant that those in debt have even less money in their pockets once they’ve serviced their repayment obligations.

“Where possible though, people should try to pay off the debts with the highest interest rates first, like credit or store cards, loans and overdrafts, and always try and repay more than the minimum amount on card balances.

“It would be beneficial for anyone finding their credit payments a struggle to seek professional help and advice before the problem gets any worse. The sooner debt problems are addressed, the better.”

Key Findings

• 2.7 per cent of people (one in 37) in the Midlands claimed to have missed store card or credit card payments, compared to the UK average 0.6 per cent (one in 167).
• 10.2 per cent of people in the Midlands said they were only making the minimum payment on their credit or store card balances, compared to 9.8 per cent across the UK and 5.2 per cent in Yorkshire.
• 8.1 per cent of Midlanders said that their household finances were a struggle, compared to an 11 per cent average across the UK, and 13.2 per cent in London.
• 1.1 per cent of Midlanders said that their household finances were seriously overstretched compared to a 2.2 per cent UK average and 4.1 per cent in Lancashire.

Research Findings

Household 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%

Midlanders most likely to miss card payments but deny they’re overstretched is a post from: Chiltern Debt Management