Even the Affluent are Struggling with Debt

The Consumer Credit Counselling Service has revealed statistics proving that affluent homeowners are struggling more than ever to repay debts. The results published by the charity demonstrate a rising number of homeowners with household incomes over £30,000 are contacting their helpline for support in managing debts.

The charity conducted an analysis of people assisted over the past three years. They explained the distinct shift in the amount of affluent people contacting them has come as a result of rising unemployment, the falling price of property and an increased cost in living. These factors combined have negatively impacted society at large; however, those with larger incomes and potentially more to lose have also been hit by the recession.

The information released by the CCCA compares the household income of callers from 2007-2008. In 2008, 12% of clients had a household income of £30,000 or more and the majority of these people were homeowners seeking debt advice. This is a distinct increase on the figures from 2007, where just 8.7% of clients had this level of income and only 42.6% were homeowners.

Although people contacting the helpline are now earning more, they are finding it harder than ever before to meet debt repayments. In many cases this may be as a result of the inability to sell a home or to find an equity release solution. The charity’s analysis also shows that people renting a home are significantly less impacted by debt worries, with homeowners owing 83% more than renters. As evidence that the recession is impacting homeowners across the country more than renters, it raises the issue over whether it is better to rent or buy in the current market.

Homeowners struggling to meet mortgage payments may be looking for a way to negate the possibility of repossession in the future. For those who are struggling or even currently facing property repossession, Swift Capital may be able to help. We are able to process a fast house sale, allowing you to release the equity from your home and pay off any outstanding debts. We will buy any property in any condition for up to 80% of the face value and can often complete a sale in just a few days. Contact Swift Capital today to see if we can find an equity release solution to suit you.