High earners have debt problems too

FRIDAY, JUNE 02, 2006

According to the Consumer Credit Counselling Service (CCCS), the number of wealthy people now struggling to pay off all of their debt is steadily increasing. Reports show that those who are currently earning over £30,000 a year, are the ones asking for the most debt management guidance as those in this income bracket asking for financial aid has risen by 257% in the past three years. Some of the causes that are attributed to this are high mortgages on their expensive homes, as well as school fees and their spending habits.

"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," Ms Saxon, the author of this report 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."

The average debt amongst the highest earners that were seeking debt advice and help from the CCCS was nearly £70,000.