Have you ever assumed that it is only the less well off who experience serious debt problems? Then think again. Although debt does affect a higher percentage of poorer people than rich, anyone on virtually any income can get into serious debt problems if they do not manage their finances properly.
In fact, it could be argued that it is actually easier for someone on a higher income to get into difficulty than it is for those on lower incomes. Those on higher incomes are more likely to be property owners, live in desirable locations and be registered on the electoral roll – all of which makes them more attractive to lenders and gives them access to higher levels of credit.
Those with higher incomes and higher credit often have a taste for ‘the good life’ and there is the natural desire to ‘keep up with the Joneses’. Whether it is a holiday home, a fast car or the latest gadgets, the potential to spend beyond their means and get into financial difficulty is never far away.
In addition, a percentage drop in income for a high earner can have a far quicker impact.
So, don’t assume it’s only one section of society affected by financial difficulties and debt problems. No matter how much money you have and the level of income you earn, you can still fall into serious debt if you don’t manage your money carefully.