Debt Management - Middle Classes Begin to Suffer

The debt management crisis resulting from the slowdown of the economy initially only effected the low income earners but a report by the Daily Mail suggests the debt management of middle classes is now being tested.

According to the report in the Daily Mail, the debt management capabilities of 'Middle Britain' have been thrown into turmoil as a result of the debt crisis which now making itself felt up and down the country. The discovery that even well off people with good jobs are struggling with their debt management and being plunged into the red is a stark indication of just how far reaching the effects of the credit crunch and various financial factors are.

Debt Management - Seeking Advice

When it comes to debt management, the most important thing to do is tackle the issue head on as problem debt can easily career out of control if immediate action isn't taken to tackle financial arrears. According to the report in the Daily Mail, there has been a 500% increase in the numbers seeking debt management advice from experts in middle class areas up and down the UK. The extent of the debt management problem is bought to light by some case studies presented in the Daily Mail, which include:

• An IT consultant who earns £28,500 a year but has debts of £28,000 and a CCJ issued against him
• A retired bank manager who earnt £40,000 but has racked up £110,000 of debt on 20 store and credit cards
• A TV producer who earns £70,000 a year but who has managed to accrue debts of £26,000 on credit cards and has £25,000 secured against their home.

Debt Management - Lending Crisis

A large part of the problem that is fuelling the debt management crisis amongst the middle classes is the fact that lending institutions are now being much more stringent about who they choose to lend to and this leads to many in the middle classes being unable to service their debts. Speaking to the Daily Mail, financial expert, James Elliot, stated, "In the past it was almost uniquely people on benefits, people in social housing, who went to debt advice agencies. Since the credit crunch started they are seeing a big increase in professional people and homeowners - people who have been pushed over the edge and now can't cope with their outgoings."

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