DebtBusters like to put their cards on the table and share their recent stats about consumers who have come to them looking for help.
Those asking them for help (slightly more men than women) span all age groups, shockingly even younger consumers such as those born after 2000.
Normally, those who ask for help with there debt only have around 6 different active credit accounts.
For higher income groups their debt split is normally 25% on their car payments, 25% on their bond payments and 50% of their debt is made up by unsecured debts (credit cards, loans, overdrafts).
DebtBusters say that 96% of their clients approach them once they have already taken on a personal loan. 20% of clients come to them with payday loans (very short term loans).
Compared to 5 years ago, the value of new clients’ debts are more than 30% higher than past clients.
So, their new clients have less accounts but their combined debts are significantly higher than past clients.
‘troubled consumers are asking for more and more money from their credit providers just to get by’
This reflects how troubled consumers are asking for more and more money from their credit providers just to get by. They are not running out and grabbing credit from lots and lots of different credit providers but rather they seem to be experiencing more debt stress due to the rising cost of living.
