Credit-squeezed adults may benefit from debt management
Credit-squeezed adults may benefit from debt management
Monday 15th March 2010
The new research, commissioned by Callcredit Information Group, also reveals that 13 per cent of adults aged 35 to 44-years-old have over-inflated their income when applying for credit in order to secure a higher limit.
Some 35 per cent of people are said to pay their credit card bills in full at the end of each month, but this drops to 27 per cent among the 35 to 44-year-olds.
What's more, ten per cent of the specified age group have taken out credit in the past knowing that they may not be able to meet the repayments.
The figures indicate that many people, particularly those with families to support, are living on a "financial precipice", said Graham Lund, managing director of Callcredit.
One setback, such as a reduction in earnings or an unexpected expense, could have "disastrous" financial consequences, he added.
"What is of real concern is that some people are deliberately over-inflating their income when applying for credit in order to increase their credit limit.
"If the borrower is inflating their income significantly and then maxes out their high credit limit, they are running a serious risk of getting into financial difficulties and being unable to repay the debt."
The situation does not appear to be showing any signs of improvement for struggling consumers, amid claims that people are in for another tough time this year.
That is according to Richard Perks, director of retail research for Mintel, who said rising taxes and interest rates have the potential to "topple" consumers in 2010.
News article brought to you by Debt1 – UK Debt Management Specialists
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