Experian has reported a massive 100% increase in the level of borrowing amongst high income families in their 30s and 40s over the past three years, with many citing the rising cost of living as the main cause.
Over a third (33%) of high income families are now reliant on overdrafts of over£1,000 to keep the family finances ticking over between pay-days, compared to just 15% in 2008. This is according to the results of a three-year survey commissioned by Experian, the global information services company and the largest credit reference agency in the UK.
The report reveals a high proportion of these families (52%) are regularly borrowing money against their overdrafts resulting in expensive repayments because of the high rates of interest charged on overdrafts compared to other credit products.
47% of UK adults have applied for additional credit in the past two years, with some borrowing from sources which charge relatively high interest rates, potentially adding to their financial pressures and risking missed repayments and a chequered credit history.
Despite this, nearly two-thirds of high income families are actually optimistic about their financial future, with 61% believing their financial situation will improve in the next 12 months, despite dipping in to their savings and relying on their overdrafts to make ends meet.
When many are borrowing to make ends meet, Experian highlights that many people are missing out on the best rates because they’re unaware of the benefits of managing theircredit report with a service such as Credit Expert.
Brits are getting better at accessing and managing their personal information that lenders see which is inevitably resulting in them securing better borrowing rates.
Making the right decisions where borrowing is concerned is vital, and getting a goodcredit rating is one of the ways you can give yourself the best chance of finding the deals you want.
Peter Turner, Managing Director at Experian Interactive said: “UK families often rely on their overdraft to get by, but that is not always the best option. Many of us choose to borrow, but it’s where you borrow from that makes all the difference. The current financial climate is tougher than ever and seeing your credit report could help families manage their credit better, as well as helping them plan for their financial futures.”
Credit Expert from Experian shows customers what a lender sees in their name. Every time someone applies for credit or a loan, that request is recorded. Multiple requests on borrower’s credit history can look as if you are over-extending yourself or a fraud is being committed. For those looking for a good credit deal or mortgage, Credit Expert allows them to check their report instantly online to ensure that it accurately reflects their position, and then as often as they want after that. Credit Expert members can also match their credit report to credit offers they are more likely to be accepted for using Experian’s Lower My Bills service.
Via EPR Network
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