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One fifth of North East households struggling with bills

More than one in five North East households are now struggling to keep up with their bills or have fallen behind with their financial commitments, according to new research.

A ‘debt tracker’ survey conducted by YouGov, in consultation with R3, the Association of Business Recovery Professionals, found that 21% of regional households are finding it hard to cope with the implications of the Credit Crunch, a figure roughly in line with the national average.

Nationally, almost 15 million households - 63% of all British residents - say their financial circumstances have got worse in the past six months, with only 13% seeing an improvement.

Fewer than one in three people (30%) say they have no borrowing at all, whilst 43% of the adult population say they currently use an authorised overdraft, and 34% have a credit card that is not repaid in full each month.

There is evidence that households are starting to adjust their spending habits, with almost half of respondents (48%) saying they are spending less on ‘luxury’ items, such as DVDs and jewellery, and 38% buying more supermarket own label or value brand goods.

Jim James, R3’s North East regional chairman, said: “Attitudes to debt appear to have changed significantly in recent years, and it’s worrying that people are borrowing with ‘no idea of how to repay’. When finances are strong, credit is useful for helping the economy, but when times are hard, people have to reassess their finances and some will find they are just in too deep.

“It’s absolutely crucial that people are not afraid to seek advice from a qualified practitioner, and the earlier they do so - and whilst some might be concerned about the implications of looking for this sort of help, the consequences of not seeking advice could be far greater.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .