South carrying 50 % more debt than north
Published On 31 January 2007
Individuals in the south of England and Wales are carrying 50 per cent more debt, according to new findings from Debtmatters.The debt specialist found that the debt threshold at which point people will seek help from an IVA (individual voluntary arrangements) is £14,000 higher in the south.
Northerners who seek IVAs – which help individuals pay off only what they can realistically afford – on average owe £31,000, while southerners seeking one owe, on average, £45,000.
Debtmatters is saying that this shows that northerners may be more 'up front' about their debt.
Michael Shirley of Debtmatters said: "Our figures show there is a clear north/south debt divide."
He added: "People in the south tend to earn more than their northern counterparts, but we are finding they also owe more, have a higher debt threshold and a different perception of what represents a problematic level of debt."
Debtmatters suggests that two reasons why southerners contend with higher debt levels are spiralling house prices and the high cost of public transport.
