- Friday, 12 March 2010An increasing number of UK adults are being hit by the ongoing effects of the recession, prompting one organisation to claim they are 'living on a financial knife edge'.
Some 26 per cent of mortgage holders claim that a drop of up to £300 in monthly income would result in being unable to meet their mortgage repayments, according to independent research commissioned by Callcredit Information Group.
Among those aged 35 to 44, some 13 per cent have overestimated their income when applying for credit, and ten per cent have applied knowing they might not be able to meet the repayments.
The statistics are "extremely alarming", according to Graham Lund, managing director for Callcredit Information Group.
"A significant proportion of people aged 35 to 44, many of whom may have families to support, are living on a financial precipice, where just one negative event, such as a reduction in paid overtime or an unexpected expense could have disastrous financial consequences," he added.
Latest figures from Credit Action reveal that total consumer credit lending to individuals at the end of January was £225 billion.
The average owed by every UK adult is now £30,306 including mortgages, which equates to 129 per cent of average earnings.
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