Middle Class Insolvency Figures Rise
Insolvency levels were shown to increase in the middle class and skilled workers groups, new figures reveal.
Although insolvency continues to be most frequent in the welfare dependent groups, and those just starting out on professional careers, middle-aged, middle class and skilled working class groups are bucking the trend.
The rate of insolvencies among a number of the poorest groups fell faster than the national average in 2010, indicating the recession has affected different groups in different ways.
The biggest increase in insolvencies occurred among the Suburban Mindsets, those who are mostly married, middle class and skilled workers - people typically of middle age. These people are often found working in city centre office jobs, but account for 10.34 percent of personal insolvencies in 2010, however those in this group are also the least likely to become insolvent.
Members of a group of people, who have been brought up in families with a history of welfare dependency, become insolvent at nearly twice the UK average rate.
The New Homemakers demographic, those who are young, single professionals and middle income earners had the second highest concentration of insolvencies in 2010 - accounting for 6.36 percent of total insolvencies, up from 2009 levels.
“While it is encouraging to see a small reduction in personal insolvency levels across the UK, there are certain sections of society that continue to face ongoing difficulties,” said Simon Waller, Experian UK and Ireland collections head.
“The recession hit different people and communities at different stages and some are finding it harder to shake off its effects.”
Prepaid Debit Cards
As this study shows, anyone can become insolvent no matter how much they earn. Becoming ridden with debt can occur from simply over spending, so budgeting is key to staying out of the red.
A prepaid debit card could help you keep inside your budget; it may help you to only spend the money you load onto it, unlike a credit card.