6 figure debts more common now??

ChillyP

Had an interesting conversation with a friend yesterday who has been working for a debt charity. Apparently the number of people seeking advice with debts of 100k has risen hugely- usually couples with combined debts at this level. 

Our debts were not that far from 100k at the start of our journey and I considered us to be a pretty extreme case!!

we also don’t tend to see that many threads on here with 6 figure debts,so can it rally be that common??

Brie

Used to see quite a few relatively on a previous money website which was more about investing rather than just saving money.   So I think our experience here is different to what's going on in the wider world. 

But a lot of that was post 2008 when a lot of things crashed.  I think the recent escalation of utility prices added to mortgage interest all being post covid leaving little in some people's reserves will result in more high level debt problems in the next year or two before stabilising again.  

fatbelly

I live and work (as a debt adviser) in a low-income area. I don't see many debt problems that size, not that it makes any difference in approach.

I suspect if I worked in a higher income area I would see larger debts

ChillyP

fatbelly said:

I live and work (as a debt adviser) in a low-income area. I don't see many debt problems that size, not that it makes any difference in approach.

I suspect if I worked in a higher income area I would see larger debts

I wonder if higher earners with debts Of that scale might manage without debt advice/support?

sourcrates

ChillyP said:

fatbelly said:

I live and work (as a debt adviser) in a low-income area. I don't see many debt problems that size, not that it makes any difference in approach.

I suspect if I worked in a higher income area I would see larger debts

I wonder if higher earners with debts Of that scale might manage without debt advice/support?

We have had one or two posters on this forum with debts in excess of 100k/150k.

The thing is they all had very good incomes, and the debt was down to just overspending, and putting everything on credit cards, spending money on stuff they didn`t need or really want, for them it just required living on a budget until it was paid down.

When you have a couple both earning in excess of 100k each, they don`t really need a debt solution, just better budgeting advice, and to be honest, they would not be a debt charities normal clientele anyway, people in that bracket would look to re-financing as a first option, the situation would have to be critical, I would say, for them to seek help from the likes of stepchange etc.

The problems start when you have that level of debt, but not the level of income to service it, and possibly due to the economic situation we find ourselves in, that is now starting to affect the previously more well off in society.

Brie

ChillyP said:

fatbelly said:

I live and work (as a debt adviser) in a low-income area. I don't see many debt problems that size, not that it makes any difference in approach.

I suspect if I worked in a higher income area I would see larger debts

I wonder if higher earners with debts Of that scale might manage without debt advice/support?

I doubt they can manage without advice and support.  But it might come from someplace more private like a good accountant.  They can't manage without some support otherwise they wouldn't have that level of debt to begin with.  

@sourcrates & @fatbelly

I wonder how much of the higher level debt is down to bad management by a man with a high income who then leaves that debt behind with a woman with little income?  Thinking of older men who remortgage, perhaps interest only, and then either run off or die leaving the ex or widow behind to cope on benefits.  Obviously it can be younger men who divorce and leave an ex with children and debts.

Not saying there aren't women with high incomes and tons of debt too.

kimwp

Brie said:

ChillyP said:

fatbelly said:

I live and work (as a debt adviser) in a low-income area. I don't see many debt problems that size, not that it makes any difference in approach.

I suspect if I worked in a higher income area I would see larger debts

I wonder if higher earners with debts Of that scale might manage without debt advice/support?

I doubt they can manage without advice and support.  But it might come from someplace more private like a good accountant.  They can't manage without some support otherwise they wouldn't have that level of debt to begin with.  

@sourcrates & @fatbelly

I wonder how much of the higher level debt is down to bad management by a man with a high income who then leaves that debt behind with a woman with little income?  Thinking of older men who remortgage, perhaps interest only, and then either run off or die leaving the ex or widow behind to cope on benefits.  Obviously it can be younger men who divorce and leave an ex with children and debts.

Not saying there aren't women with high incomes and tons of debt too.

Anecdotally, of course, but my feel is that we mostly tend to get people in their 30s-60's on here.