Middle classes struggling with lifestyle debts say credit counsellors

The middle classes are struggling to cope with their levels of debt, reports the Consumer Credit Counselling Service (CCCS).

The number of people earning more than £30,000 a year approaching the charity for assistance has shot up 267 per cent since 2003, it said.

Almost 3,000 high-earners called the CCCS for advice last year, facing average debt burdens of just under £70,000 said Helen Saxon, author of the CCCS report.

“Accepted wisdom suggests that a take-home income of £30,000 per year is enough to allow most families to be able to manage the demands on their income,” she said.

“But large mortgages, rising school fees, keeping up with the Joneses and the increasing availability of credit have made debt a normal part of life for many of the middle class.”

Easy access to homeowner loans and the normalising of debt has begun to spiral out of control for many, said the CCCS, funding the gap between lifestyle and income.

The typical high earner approaching the charity lives in a home worth at least £500,000, funded by mortgages.

They also owe money on around 13 other loans such as car finance, credit cards, overdrafts and shop finance.

© Adfero Ltd

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