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Middle England Feels the Pinch

Credit Crunch takes hold of the Affluent

19-May-2009, Writes Dan Drage dan.drage@consumerchoices.co.uk

Nobody, it seems, is safe from the ever expanding clutches of the credit crunch.

According to figures published by UK debt help agency Transact, its offices in affluent areas of the UK are becoming overwhelmed by requests for financial help and advice.

Traditionally middle class enclaves such as Haywards Heath in Sussex and the upmarket Congleton, Cheshire, are seeing a rise in levels of unmanageable debt amongst homeowners and professionals.

Advice centres in such areas have had to turn away many individuals seeking help due to unprecedented demand. Enquiries in the Cheshire office are up 100% on last year.

"In the past it was almost uniquely people on benefits, people in social housing who went to debt advice agencies, but now these services are being overwhelmed by a new breed of debtor: middle class people"

Transact says government funding has been generous, with an extra £55 million over the past three years to fund an extra 500 debt advisers. The money has been concentrated on urban areas though, where the rise in unmanageable debt has been less severe.

Transact co-ordinator Jamie Elliott describes the profile of these new clients:

‘In the past it was almost uniquely people on benefits, people in social housing who went to debt advice agencies, but now these services are being overwhelmed by a new breed of debtor: middle class people’

He continues:

‘What that means is there is much less debt advice to go round.’

Chris Eagle, Commercial Manager at Credit Choices, rejects this idea and has some advice of his own:

‘The middle classes should have as much access to debt advice as the working classes; this is a basic human rights issue’

He continues:

‘There are a number of ways to successfully circumnavigate the credit crunch though. My advice would be to get a strong savings account, dig in, and try to ride out the next 18 months or so. The Icesave (www.icesave.co.uk) fixed rate savings account currently offers a whopping 7.01% rate of interest and should be taken advantage of immediately.’

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