Debt woes ‘hitting middle Britain’

Debt managementproblems are now having a significant impact on the finances of middle-income families across Britain, it has been claimed.

According to a study carried out recently by Axa, more and more middle-class households are finding it more difficult to save as a result of a stretched budget.

The height of house prices has been cause for concern in what Axa describes as “middle Britain” and for many thousands of households who fall in this bracket are reportedly struggling to become debt free.

As a result of the worsening economic climate in the UK, an increasing number of middle class consumers are looking to cut back on their spending but inflation for these people continues to rise, Axa has insisted.

Steve Folkard, a spokesperson for Axa, commented: “A typical family in Middle Britain may have a higher than average income but millions are weighed down by high lifestyle costs and face tough choices as the strain on their finances takes its toll.”

The typical British household now pays almost £3,800 per year to service the interest on their outstanding debts, according to figures compiled by Credit Action.