Debt Denial – Middle Aged Delay Debt Help
Middle Aged Worst Hit By ‘Debt Denial’
Debt Denial – Britons are short by £693 on monthly household budgets before they seek debt help
Britons are still waiting far too long to get help with their debts, according to new research from free debt solutions provider Payplan. Research on over 100,000 customers has revealed that they are short by a monthly average of £693 on their household expenditure when they seek assistance for their debts.
This figure varies by age, with middle aged debtors suffering under the largest difference between income and outgoings (an income of £1,864 vs. expenditure of £2,452). At the other end of the scale, 20-30 year olds seeking help for their debt problems come to Payplan with a deficit of almost £400 a month on their outgoings.
Key Payplan Debt Facts
- Britons wait until they owe more than 50% of their income to creditors before seeking help.
- The average unsecured monthly debt repayment is £901.40.
- Indebted Britons wait until their deficit stands at £693 before seeking help. This deficit is growing; last year it was £671.
- The largest deficits, and the largest growing deficits, are those of 40-50 and 50-60 year olds. The average deficit for this age is £837, with a deficit growth of £67.
- In 2008, homeowners spent 52.15% on their unsecured debt repayments, compared with renters, who spent 49.48%.
- The over-sixties have the largest excess debt as a percentage of their income. With the gap between their income and expenditure standing at £724, to cover their debts they would need a 55% increase in their income – although many are approaching retirement and a reduced income.
30-40 Year Olds Bucking Trend
The one group bucking the trend and coming to Payplan earlier, with smaller deficits, are 30-40 year olds. Although their deficit is still high, at £659.22, it has reduced by £60.00 a month in the past year, sparking suggestions that this particular group are choosing to get help sooner rather than later.
John Fairhurst, Managing Director of Payplan, commented on this research:
“We strongly urge people to get advice on their options as soon as they feel they have a problem. You might be scared to tell your creditors that you are having difficulties, but you shouldn’t be afraid to tell an independent and confidential debt advice agency.
“Our research shows that British debtors are waiting far too long before seeking professional help. Prior to the credit crunch, if Britons couldn’t afford their repayments they would often borrow further to pay them off, which clearly just made their situation even worse.
“Now what we are seeing is an increase in calls as people realise that they simply cannot borrow more money. Our statistics show that the problem increases dramatically with age. The earlier customers come to us for help with their finances, the better for them.”
For free debt advice and free debt solutions contact Payplan on 0800 280 2816 or through the online debt calculator.
Written by on December 12th, 2008
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