North East struggles with debt
Residents of the North East are the most likely to say their debts are a struggle according to the latest research from credit report service MyCallcredit.
Its research also revealed more people in the North East have unsecured debts, like credit and store cards, and more of them expected their debt repayments to increase over the next twelve months than anywhere else in the country.
And a lower number than average, 88.7 per cent against 92.7 per cent say they are comfortable with their current levels of debt.
MyCallcredit director Alison Nicholson says:
"Most people in the UK are managing their debts perfectly well but this research shows that people in the North East may be more vulnerable to debt problems than elsewhere in the country.
Those who are struggling at the moment need to get help before the problem becomes worse.
In addition the industry needs to continue developing more responsible lending practices, like introducing true affordability checks at the time a credit application is made, and individuals need to take stock of their overall financial position to make sure they are applying for credit responsibly."
- Seven out of ten people (71.4 per cent) in the North East have unsecured debts compared to six out of ten (60.2 per cent) across the country.
- Of the North Easterners who have debts 88.7 per cent are comfortable with them compared to 92.7 per cent nationally.
- No-one in the North East said they were out of their depth with their debts but 11.3 per cent said things were a struggle, nearly double the national average of 6.6 per cent.
- One in ten people living in the North East said they expected to be spending more of their monthly income on unsecured debts in a years time compared to 6.5 per cent nationally and just 1.5 per cent in Yorkshire.
- The research was carried out for MyCallcredit by NEMS market research among 1001 adults between 18 May and 25 May 2006.