The survey, compiled from data submitted by more than 1,000 applicants to www.cleardebt.co.uk shows that, amongst people concerned about their debt, 78% owe more than they earn in a year on credit cards and loans. More than a quarter owe more than two years’ income.
The ClearDebt survey shows that men owe more than women (men owe 145% of salary, 11% higher than women).
Debtors in NW England owed the highest proportion of their income (164%). West Midland’s debtors had the lowest debt/income ratio, at 79%.
More than 70% of the debtors approaching ClearDebt were under 35, yet, despite the fact that more than a third of these individuals owe more than12 month’s earnings younger people seem many times less likely to take action to deal with their debt.
“It’s the over 45’s who are much more likely to follow through seriously once our site has shown them a route out of debt”. Comments ClearDebt’s founder, David Mond of Manchester chartered accountants’ Hodgsons:
“Its almost as if younger debtors think that in time, maybe with a new job or a pay rise, the problem will go away. At the levels of debt we are seeing this is unlikely – and I’d venture to suggest that, even if bankruptcy now looks easy. Subsequent difficulties in obtaining mortgages and credit are likely to have far reaching effects on those younger debtors who exhibit ostrich-like behaviour”.