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According to a top UK charity the number of debtors with personal debt problems earning more than £30,000 a year is on the increase for the fourth year running.
The most common reasons for the high increase in debts are high mortgages, school fees and keeping up with neighbours' spending habits. According to the charity Debt now seems a "normal part of life" for these high earners with the average debt at £70,000.
Income gap
Helen Saxon, author of the charity report, said earning a high income did not necessarily mean avoiding going into the red.
"Accepted wisdom suggests that a take-home income of £30,000 per year is enough to allow most families to be able to manage the demands on their income," Ms Saxon said.
"But large mortgages, rising school fees, keeping up with the Joneses and the increasing availability of credit have made debt a normal part of life for many of the middle class."
Ms Saxon added that many people, particularly in London and the South East, have turned to credit to bridge the gap between their incomes and their outgoings. People are now spending thousands of pounds more than they can afford just to keep up with their neighbours - the Joneses to be more precise.
Just To "Fit In"
Another survey of 1,450 adults by online credit monitoring firm CreditExpert.co.uk showed that one in five were overspending because of peer pressure and just to ‘fit in’ with friends.
According to the CreditExpert survey people were spending more than £100 a month beyond their means on clothes and men spent around £2,000 extra a year on cars to keep up with their mates.
By spending beyond your means will result in mounting debts which will ultinmately lead to a bad credit rating and unfortunately if your credit rating is unattractive to lenders, they will be less inclined to offer you credit.
If you are struggling to pay your unsecured debts please contact Debt Plan Direct for further advice on your options 0845 055 8152
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