Southerners are more likely than any other region of Great Britain to struggle with their household finances according to research from Chiltern Debt Management.
One in six Southerners said their finances were a struggle, more than double the number in the North East (one in 16) and compared to a UK average of one in nine.
The research also revealed that Southerners are more likely than average to make only the minimum payments towards their credit or store card balances each month, and one of only three regions in the UK where people admit they are already missing some card payments.
However, residents of the South were more than three times less likely to say their finances were seriously overstretched, (one in 83) than those who live in Lancashire (one in 24), and against a UK average of one in 45.
Chiltern’s Joanne Gill says: “Southerners are among the people struggling the most with their debt in this country. They are paying minimum balances, which means more interest and charges, and that they will be in debt longer. And they admit to missing some payments on their credit and store cards, which will again lead to higher charges and mean it takes longer to pay off the debt.
“While there are currently a lower number of Southerners than average who say they are seriously overstretched, it’s clear there is a higher number than anywhere else in the country who are in danger of finding themselves overstretched if, as widely expected, we see further interest rate rises this year.
“If people are having difficulties there is help available and people should seek it out and know that they’re not alone, more than 6m (1) people in the UK are already struggling and the situation looks set to get worse.”
Key Findings
• 15.4 per cent of Southerners (one in six) said their finances were a struggle compared to 13.2 per cent (one in eight) in London and 11 per cent (one in nine) throughout the UK.
• 10.6 per cent (one in nine) of Southerners are only making minimum payments towards credit and store card balances each month against 14.8 per cent in Lancashire (one in seven), 5.2 per cent (one in 19) in Yorkshire, and a UK average of 9.8 per cent (one in 10).
• 1.2 per cent (one in 83) of Southerners said their finances are seriously overstretched compared to a UK average of 2.2 per cent (one in 45).
• 0.7 per cent of residents in the South admit they have missed some credit and store card payments. The only other regions in the UK where people said they had missed payments were the Midlands and Lancashire, 2.7 per cent and 0.8 per cent respectively.
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% |