Now I’m not one to go on about the class system in Britain today and the cliches that are associated with it, but traditionally (and I accept that this is a broad generalisation…please don’t be offended!) it was thought to be the working classes who were the ones to have money problems and be struggling with debt issues, people such as council tennants and individuals claiming benefits. The more affluent members of society always tended to manage their finances more dilligently and were noted for saving money rather than borrowing it.

But it appears that times are changing, according to debt advice centres across the country. Community Money Advice (CMA)is an organisation which offers help and advice to those in financial difficulty and is now seeing a change in the type of client requiring their services. They have seen a huge increase in individuals with debt problems over the last twelve months, but with predominant increases in middle class areas, with many of their clients working in areas such as Teaching, Banking, Public Sector, the Police force, etc.

Many of these individuals are homeowners, with good jobs, who have been able to borrow money on mortgages and loans cheaply and easily, with both themselves and lenders depending on ever increasing house prices and wages to support their borrowing. In some instances, people have taken out a large loan simply because it was available, without actually having any need for the money!

With the increasing cost of credit over the past few months and stagnant, or decreasing house prices, coupled with an increase in the cost of basic items and services such as food, gas and electric and petrol, many of these borrowers are now feeling the additional pressure caused by their excessive loans, credit cards and mortgages.

The CMA has even been forced to stop accepting new cases in one affluent area due to the fact it cannot cope with the additional demand, which is a great concern for those requiring debt councelling services . There has always been a need for free debt advice services, but at the present time, demand is far outstripping supply and new funding must be found urgently  if organisations like the CMA (amongst others) are  to maintain a viable service to those struggling with their finances.