Midlanders are the most likely in the UK to miss their credit or store card commitments, but among the least likely to say their finances are “seriously overstretched” according to research from Chiltern Debt Management.
Over four times the UK average, one in 37 compared to one in 167, declared that they had missed some of their payments to credit and store card providers.
One in ten Midlanders, slightly above the UK average, also regularly paid only the minimum amount towards their credit or store card balances.
Despite this only one in 12 said that their finances were a struggle, compared to a UK average of one in nine, and just one in 90 said that they were seriously overstretched, compared to one in 45 throughout the UK.
With recent interest rate rises these numbers could soon be on the increase as more people struggle to manage their household finances against rising debt repayments.
Chiltern’s Joanne Gill says: “The recent interest rate hike has meant that those in debt have even less money in their pockets once they’ve serviced their repayment obligations.
“Where possible though, people should try to pay off the debts with the highest interest rates first, like credit or store cards, loans and overdrafts, and always try and repay more than the minimum amount on card balances.
“It would be beneficial for anyone finding their credit payments a struggle to seek professional help and advice before the problem gets any worse. The sooner debt problems are addressed, the better.”
Key Findings
• 2.7 per cent of people (one in 37) in the Midlands claimed to have missed store card or credit card payments, compared to the UK average 0.6 per cent (one in 167).
• 10.2 per cent of people in the Midlands said they were only making the minimum payment on their credit or store card balances, compared to 9.8 per cent across the UK and 5.2 per cent in Yorkshire.
• 8.1 per cent of Midlanders said that their household finances were a struggle, compared to an 11 per cent average across the UK, and 13.2 per cent in London.
• 1.1 per cent of Midlanders said that their household finances were seriously overstretched compared to a 2.2 per cent UK average and 4.1 per cent in Lancashire.
Chiltern Debt Management provides an informal solution to help people manage their debts. This involves working with the customer to produce a budget detailing income and necessary expenditure, like housing, food, clothes, bills and transport.
The money left over, once living costs have been accounted for, is known as the disposable income. This is shared proportionately between the customer’s creditors until the client becomes debt free or a change in circumstances means they are able to resume contractual payments to the creditors.
Research Findings
Household finances by gender
| Gender | Struggling | Over-stretched | Paying in full | Minimum payments |
| Female | 14.2% | 2.0% | 36.9% | 11.6% |
| Male | 7.7% | 2.5% | 38.8% | 7.8% |
| Average | 10.9% | 2.2% | 37.8% | 9.8% |
Household finances by age
| Age | Struggling | Over-stretched | Paying in full | Minimum payments |
| 16 – 24 | 11.2% | 0% | 23% | 7.9% |
| 25 – 34 | 10.6% | 1.7% | 37% | 11.5% |
| 35 – 44 | 11.4% | 3.1% | 43.8% | 10.7% |
| 45 – 54 | 14.8% | 4.9% | 42.3% | 13.7% |
| 55 – 64 | 12.5% | 2.2% | 44.8% | 9.8% |
| 65+ | 6.9% | 1.4% | 36.1% | 5.4% |
| Average | 11% | 2.2% | 37.8% | 9.8% |
Household finances by region
| Region | Struggling | Overstretched | Paying in full | Minimum payments |
| East Anglia | 11.2% | 0.7% | 48.4% | 12.1% |
| Lancashire | 14.6% | 4.1% | 28.9% | 14.8% |
| London | 13.2% | 2.0% | 45.8% | 7.7% |
| Midlands | 8.1% | 1.1% | 35.6% | 10.2% |
| North East | 6.2% | 0.8% | 43.6% | 9.4% |
| Scotland | 8.1% | 2.0% | 22.1% | 10.1% |
| Southern | 15.4% | 1.2% | 42.7% | 10.6% |
| Wales | 9.7% | 3.9% | 36.2% | 6.9% |
| Yorkshire | 6.5% | 2.5% | 39.6% | 5.2% |
| Average | 11% | 2.2% | 37.8% | 9.8% |