Middle Class Hit By Debt Epidemic

The middle class of britain are now being hit by the debt crisis. Even the well off with good jobs are struggling to pay their debts.

Debt advice centres are reporting that more and more middle class people are seeking help. They have given examples of a TV Producer with a 70k income per annum with 26500 credit card and another 26000 loan secured on the property now seeking help.

Even an ex Bank Manager with an income of 40k per annum has 110k debts from 20 credit cards and loans.

Many household budgets are being pushed to breaking point by the disappearance of cheap mortgage deals, and put that together with the rise of fuel bills, Petrol and Shopping costs.

In the past decade they have all been tempted by cheap credit and now they find they are struggling with the repayments.

The debt companies are even turning away people because they cannot meet the rise in demand.

Debt Advice centres are reporting that in the past most of their clients came from people on benefits and people that lived in social housing, but now they are seeing a huge rise in the number of middle class people with good jobs.

They are being overwhelmed and are struggling to keep up with the demand for debt advice and the change has been largely due to the credit crunch. Before the crunch these people could remortgage their homes and save themselves thousands but with remortgage deals disappearing, they have nowhere else to turn.

Community Money Advice a charity which helps establish and support money advice centers are reporting an 85% increase in the number of people seeking financial help in the 12 months o December.

Teachers, Police Officers and banking workers many of them homeowners are struggling to keep up with their mortgages, loans and credit card bills. They were already overstretched and are now being pushed over the edge with the rising costs of Mortgage, Utility Bills and shopping.

Advisors claim that a large part of the blame for the crisis lies with the homeowners living the high life with new homes, designer clothes, flash cars and expensive holidays all bought on credit.

But experts insist that the banks and financial institutions must take some responsabilty for encouraging people to go in to debt by handing out easy loans without proper affordabilty checks. And they also believe the goverment can do more by educating people about personal finance, so we can avoid susch problems again.