Millions of middle class debtors are finding themselves in serious trouble, recent research from debt advice charity Transact has shown, as the credit crunch starts to hurt wealthier UK residents. Debt advice charities in more affluent counties, such as Tunbridge Wells, Cambridge and Horsham, have seen an increase in enquiries of up to 200% in the past twelve months.
Anecdotal evidence from these charities suggests a significant switch towards wealthier middle class debtors who are suffering from the effects of the credit crunch. This growing breed of client includes a retired bank manager from Sussex with an annual income of £40,000 and £110,000 of debt across 20 credit cards and loans. In the Midlands, an IT manager on a £28,500-salary has £28,500 of unsecured debt and a county court judgement against him.
The data suggests that the drop in house prices and rise in mortgage payments is to blame for this sudden rise in middle class debt and insolvency. Plenty of wealthier individu…