ClearDebt, the Manchester based debt advisory and IVA arranging company today announces a survey of over 5,500 indebted individuals, the results of which shine a light on Friday’s Q3 Government insolvency statistics.
ClearDebt’s survey throws up some interesting regional statistics. Whilst the national average unsecured debt was £25,572, there was considerable divergence between regions. Neighbouring regions, the North West and North East were at different ends of the scale with average debts of £ 25,326 and £12,362 respectively. Significantly, the North West had a higher debt than the South East (£24,601), whilst the average North Western income was over £1,500 lower than in the South East.

Women appear to be better at managing their personal finances than men. ClearDebt’s survey shows that, whilst women are paid 20% less than their male counterparts, women’s debts are 27% lower than mens’. More significantly, women appear to live within their means – having an average annual surplus of nearly £2,000. Highly-indebted men, by contrast, are spending roughly £3,500 more than they take home every year.

Finally, the ClearDebt survey illustrates that age and experience do not necessarily mean a reduction of debt. Total unsecured debts for the under 25’s average at £11,440, whereas the over 45’s average is for £33,370.

This trend could be seen to represent a change in society: debt no longer carries the same stigma. Consumers who consider overdrafts and credit cards a fact of life are walking along a debt tightrope by increasing their level of debt as they increase their level of income. If they are then hit by an unforeseen catastrophe, they often fall off the tightrope into personal insolvency, and either arrange an IVA or have to be declared bankrupt.
The full range of debt statistics can be as a separate attachment to this release.

Commenting on the survey’s findings, Andrew Smith, marketing director of ClearDebt said:

“These findings provide context to the Government’s figures, which are expected to show another rise in personal insolvencies. We believe that this survey challenges commonly held perceptions about personal debt: this is not just a problem for young metropolitan consumers.

Our survey shows that significant unsecured personal debts are prevalent across the board, no matter where you live or how old you are. We at ClearDebt are aware that insolvency is as much of a challenge for a 50 year old man in Portsmouth as for a 22 year old woman in Manchester.”

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For further information please contact:

ClearDebt:
Andrew Smith 01234 825826 (mob: 07971 272 483) email: Andrew.smith@cleardebt.co.uk

College Hill Associates:
Paddy Blewer – 020 7457 2020 (mob: 07765250857) e-mail: Paddy.blewer@collegehill.com

Note for Editors:

ClearDebt is the newest entrant to the Individual Voluntary Arrangement (IVA) market.

ClearDebt aims to provide the most transparent and ethical service to debtors, at the lowest cost – giving many more people the opportunity to arrange an IVA than has been possible before. All customer-facing staff have been specifically trained in IVA provisions and all have insolvency practice experience: we are not a call centre, nor do we employ call centre type operatives.

ClearDebt’s principles include providing best advice wherever possible to all debtors: Where the facts indicate an IVA is the right solution we will provide advice and support – but never pressure – to the debtor. Where the facts indicate other solutions we’ll point the debtor in the right direction.