Debt problems are beginning to affect the more affluent parts of society, with many unable to take the 'quick-fix solution' of remortgaging their properties, according to a debt advice website.
The property market slowdown and recession are beginning to cause debt headaches for people on higher incomes, it has been claimed.
Derek Oakley, operations director at advice website DebtFreeDirect.co.uk, explained that the lack of mortgage availability and buyers has meant that "people are locked within their property and the previous quick-fix solution of remortgaging to pay off debt is no longer an option". Falling house prices have also made people reluctant to sell and the risk of negative equity is looming for many.
He added: "In the last 12 months we have seen a 25 percent increase in people with serious debt problems with annual earnings of over £35,000." However, there are other solutions available to people who are in a property which they are unable to sell, he said.
"Owning a property does mean you have the option of renting a room to help with the mortgage if you have the space available," Mr Oakley explained. He did acknowledge that this solution may not be suitable for some people and that there are no one-size-fits-all solutions to the problem of debt.
"I wouldn't want to class one type of customer's debts as more difficult than another's," he concluded.
