FCA publish: Journey to distress part 2 – the profile of debtors in difficulty
Industry News | 08/01/20
A close analysis of the UK’s troubled borrowers confirms many intuitive assumptions about distress, but it also throws up some unexpected findings. Different borrowers experience distress in different ways – age, income and total debts tell only part of the story.
In part one we identified four groups that make up the UK’s population of borrowers: mortgage-holders, standard-cost borrowers, high cost borrowers, and a final group whose only significant debts are their household bills.
But taking a deeper dive into each group we can uncover further patterns that distinguish the distressed from the non-distressed and may find clues as to why some people become distressed debtors and others do not.
