The above infographic shows how debt reality and debt perception can sometimes be very different things. The debt management company Payplan.com have produced an infographic which demonstrates that most people who have debt problems do not fit into a certain demographic.
For example, in terms of regions it appears that many people expected the North East to be a debt hotspot when in fact it is one of the areas with the lowest levels of debt. Also, if you look at the numbers with reagrd to divorced and seperated people and the perceptions compared to the reality you see some stark contrasts.
Another contrast which the infographic throws up is the difference in perceptions regarding debt and renters compared with homeowners since this group seems to have a relatively lower level of debt sufferers. In terms of average monthly incomes, the perception was that the average wage of a debt struggler would be lower than it actually is. In terms of the total amount of unsecured debt, there was a perception that the average amount of liability would be lower than it is. Also, it will take people who struggle with debt to take 9 years to clear the debt on average, wheras the expectation s that the average would be closer to 7.
What we can take from this is that there is no stereotype when it comes to debt sufferers. They can live in any region, be from any walk of life and be at any income level.
Perhaps there are explanations for the above. For instance, people in the higher income brackets who have higher levels of debt will be in that situation because they have had more access to credit and thus more temptation. On the flipside, those from the north east will have lower levels of debt because average incomes tend to be lower and access to credit is limited.
Source: Debt Management Company, Payplan who are an IVA and Free Debt Management Plan provider.