Increasing levels of debt take toll on the North

The major conurbations of the North East are the most indebted region of the UK according to research from credit report service MyCallcredit.

Almost half the people surveyed said they would prefer it if the checks could be done electronically and one in five said they would be prepared to pay for the improved service.

MyCallcredit director Alison Nicholson says:

"People in Durham, Newcastle and Sunderland are the most likely to be approaching overindebtedness while people living in South Western towns like Exeter, Plymouth and Bristol are least likely to be facing a heavy debt burden.

"The vast majority of people are still up to date with their credit commitments and managing their finances well but there is concern over levels of debt and pressure on lenders to lend responsibly - our research helps lenders fulfil this responsibility to their customers."

Key Findings
  • Uxbridge is the most overindebted town in the UK closely followed by Motherwell, Wigan, Ilford, Romford and Luton.
  • Dorchester is the least indebted town in the UK followed by Salisbury, Llandridnod Wells, York, Exeter and Taunton.
  • The residents of the North East, Durham, Newcastle and Sunderland, are the most likely to be in debt.
  • People who live in the South West, Salisbury, Taunton and Torquay are the least likely to be burdened by debt.

Callcredit created the indebtedness rankings by analysing consumers based on a number of debt indicators, including ones identified by the government's overindebtedness task force.

These include:
  • High outstanding credit balances
  • High level of commitments relative to income
  • Accounts falling into arrears
  • Frequent opening of new accounts
  • Revolving credit agreements

Lenders can access the overindebtedness information through Geodebt, one of Callcredit's business to business products.