Those who rent their property rather than having a mortgage have been identified in a new poll as being the most financially vulnerable to the consequ…
Those who rent their property rather than having a mortgage have been identified in a new poll as being the most financially vulnerable to the consequences of debt.
A Consumer Credit Counselling Service (CCCS) survey revealed 2.9 million people who rent their homes are in rental arrears or are finding it hard to keep up payments.
Debt management help may be a good way in which people can seek to tackle these problems.
This is worst among people who rent privately, whose average unsecured debt is £18,733, compared to £14,239 for those in housing association properties and £12,612 for people in local authority homes.
And the tendency for renters to be in debt was noted by the CCCS, half of whose clients are non-homeowners.
Director of external affairs at the charity Deltroy Corinaldi said: "The next few years are going to be tough for many people as the economy has shown few signs of improving and those living in rented accommodation will be at the sharp end of this.
"I fear that many will end up homeless."
Among factors the CCCS has identified as being likely to make matters worse are inflation, wage freezes and changes to the tax and benefit system, while those who rent are not enjoying the benefits of low interest rates in the way mortgage payers are.
The study was published at a time when concern about personal debt has been rising.
Last week, research by the insolvency practitioners' body R3 indicated 47 per cent of Britons are currently worried bout their personal debt levels, up seven per cent from a year ago.
By James Francis