The credit squeezed generation?

Adults aged 35 - 44 years living on a financial knife edge.

One in four unable to pay their mortgage if monthly income dropped by just £300.

Key findings:

  • More than one in four mortgage holders (26%) say that a drop of up to £300 in monthly income would mean that they would be unable to meet their mortgage repayments
  • Almost one in ten adults (9%) have overestimated their income when applying for credit, rising to 13% of those aged 35 - 44 years
  • 6% of people have applied for credit knowing they might not be able to meet the repayments, rising to 1 in 10 (10%) people aged 35 - 44 years
  • One in twenty (5%) people have stopped paying off their credit card bills in full, reverting to minimum / fixed payments, rising to 7% among 35 - 44 year olds
  • 35% of people pay their credit card bills off in full at the end of each month, but this drops to 27% among 35 - 44s

Independent research commissioned by Callcredit Information Group has today revealed that people aged 35 - 44 years, typically adults with a young family to support, appear to be a hard hit group by the continuing recession, with one in four (25%) saying that a drop of just £300 in monthly income would cause them to default on their mortgage payment.

Commissioned by Callcredit, the YouGov research also shows that more than one in eight (13%) adults in this age bracket has deliberately over-inflated their income when applying for credit in order to help them secure a higher credit limit, compared to less than one in ten (9%) of the overall population.  Ten percent of those aged 35 - 44 have also taken out credit in past, knowing that they might not be able to meet the repayments.

The research also showed a noticeable reduction in the proportion of people paying off their credit card bills in full each month with one in twenty (5%) people who previously paid their bills in full now paying just the minimum or a fixed amount.  This rises to one in fourteen (7%) people aged 35 - 44 years.

"These statistics are extremely alarming," said Graham Lund, Managing Director, Callcredit Information Group.  "A significant proportion of people aged 35 - 44,  many of who may have families to support, are living on a financial precipice, where just one negative event, such as a reduction in paid overtime or an unexpected expense could have disastrous financial consequences.

"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.  Credit limits, which are determined by individual lenders, are assessed on how much an applicant can realistically afford.  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."


About Callcredit Information Group

The Callcredit Information Group (CIG) brings together experts across the fields of credit referencing, marketing services, interactive solutions and consultative analytics to enable our client base of businesses and consumers to make informed decisions using our innovative products and services.

CIG's products and services are delivered in five distinct areas:

To ensure effective delivery, the Group is divided into two complimentary divisions:

  • Credit Solutions, encompassing specialists in credit risk, Identity verification services and tracing tools
  • Marketing Solutions, providing specialist knowledge in customer analytics, consumer targeting, database building and hosting, marketing communications, business modelling and market analysis www.callcreditgroup.com

Callcredit Check is the consumer arm of credit reference agency Callcredit, providing consumers with instant online access to their credit report and services to help them monitor their credit status www.callcreditcheck.com