Londoners say their finances are more of a struggle than average but nearly half claim to pay off their credit and store card bills in full each month according to research from leading debt management provider, Chiltern.
Southerners are the most likely to battle with their finances with one in six saying things are a constant struggle. However, London was close behind, where one in eight claims their money is difficult to manage.
But Londoners are among the most likely across the country, along with East Anglians, to pay off their credit and store card bills each month with nearly one in two clearing their debt each pay day.
Chiltern’s Joanne Gill says: “Living in London is expensive, housing and transport costs are among the highest in the country and residents of the capital are feeling the pinch.
“But our research shows they have a more healthy relationship with credit than in many other areas of the country, where being in debt and using credit to pay for the necessities in life becomes a way of life. This means credit balances are never cleared in full.
“Londoners need to be aware though, that further increases in interest rates this year could have an impact on their household finances and they should be careful not fall into the trap of using more credit and only paying off the minimum balances. Once people start to feel this is happening to them they should seek help.”
Key Findings
• One in eight Londoners struggles with their money (13.2 per cent) the second highest in the country behind Southerners (one in six or 15.4 per cent) and compared to a UK average of one in nine (11 per cent).
• Only one in 13 (7.7 per cent) Londoners pays off the minimum balance on store cards each month, the UK average is one in ten (9.8 per cent)
• Londoners are the second most likely in the country to clear their credit and store card balances in full each month behind East Anglians, 45.8 per cent against 48.4 per cent. Scots are the least likely to clear their balances in full with just one in five (22.1 per cent) paying their bills in full each month.
• Londoners are less likely than average to say they are seriously overstretched, 2 per cent against 2.2 per cent but nearly three times as likely to be overstretched as residents of East Anglia (0.7 per cent)
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 FindingsHousehold 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% |