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Debt problems better for single parents

20/01/2011

It may come as a surprise to many people trying to deal with debt problems at the moment that you’re more likely to come out on top regarding debt if you’re a single parent.

The news comes from data in a report from insurance giant Aviva.

The firm says that 40 per cent of single parents are free of debt problems, compared to 26 per cent of people who are in a relationship and plan to have children.

Contributing factors in this finding are said to include the average mortgage debt amounting £89,000 - with the average credit card debt or loan debt is more than £5,000.

Debt help could be seen as one way in which struggling households could remedy the arrears which are the source of their debt problems.

Aviva also said that half of families are worried about the new pressures inflation brings to everyday living costs and the running of a homestead.

It was also revealed that single parents use about 29 per cent of their monthly income purely to address their debt problems.

Kevin Still, Director of Atlantic Financial Management: "With the cost of living rising at more than double the rate of wage increases it is not surprising that repaying your debts as a proportion of your disposable income is increasing. This increases the likelihood of serious debt problems where the average UK household using credit has unsecured debt balances of well over £15,000. For clients on a Debt Management Plan (DMP) or an IVA then this is more likely to be over £30,000 with more than 7 creditors." ADNFCR-2613-ID-19951448-ADNFCR