Research from leading debt solution experts, ClearDebt, confirm people in the UK with children manage their money better than those without.

• Homeowners without children in 2008 owed 173% of their income *
• Homeowners with children in 2008 owed 160% of their income
• Homeowners without children in 2009 owed 203% of their income
• Homeowners with children in 2009 owed 158% of their income

Comparing the first six months of 2009, with the same period (January to June) in 2008, homeowners without children have increased their unsecured debts by almost 30% (to 203% of their annual take home pay) whilst those with children have taken heed of the recession and cut back their debt by 2% (to 158% of their income). This makes the income/debt ratio between these two groups even larger. ClearDebt warns these are clear signs that the credit crunch has done little to ensure those without dependents curb their retail therapy.

ClearDebt Marketing Manager, Jacqueline Cohen, says:
“As a previous shopaholic and most recently a new mum, I completely understand these figures and why parents are naturally able to cut back and spend more sensibly. On becoming a parent, you inevitably think twice before making any purchase and question how you can spend the money more wisely in your family’s interests. I think without children, you have no reason not to indulge in selfish purchases which although offer great satisfaction, often end up used once and then stored at the back of the wardrobe.”

ClearDebt’s research endorses news they released earlier this month claiming homeowners around the UK are keeping the life they are accustomed to during the credit crunch by falsely relying on the declining and often non-existent equity in their homes

Figures ClearDebt released earlier this summer, indicating renters have proved to be more adaptable at budgeting than homeowners, are highlighted yet again in this latest research.

Statistics show renters in 2008 without children owed 15% less of their income than homeowners in the same situation whilst renters in 2008 with children owed 30% less their home-owning counterparts. A year on, the figures show renters without children in 2009 are spending almost 42% less of their income than childless homeowners, and renters with children in 2009 owe 31% less than homeowners equivalents.

Notes to Editors:

*Ratio of annual take-home pay to total unsecured debt

For further Information on ClearDebt contact:
Jacqueline Cohen on 07976 739 125, jacqueline.cohen@cleardebt.co.uk
Andrew Smith Andrew.smith@cleardebt.co.uk