Debt Management - UK - September 2010
- There are signs that those most likely to need help managing their debts are slightly more positive about debt management firms. A fifth of those who owe at least £10,000 in unsecured borrowing think that you’re able to negotiate a better deal with creditors if you have one of these companies on your side.
- This is a sizeable and fast-growing market. Mintel estimates that there are around 600,000 debt management plans (DMPs) in force, with around £9 billion of funds under management, and generating around £262 million in fees in 2010.
- Only a minority of consumers will ever be potential targets for debt management firms, but currently some 6% of all UK adults – around 3 million people in total – are seriously struggling with their finances. Even relatively minor financial shocks could tip them over the edge.
- People with money problems have a strong preference for informal support mechanisms. The majority of people (58%) say that if they were struggling with debt, they would turn to friends or family for debt advice, with just 2% saying they would go to a commercial debt management firm.
- The most common attitude towards debt management firms is that they are an absolute last resort (over half of all UK adults think this) – a quarter say that they just prey on desperate people.
- A lack of regulation means that the industry’s image has been tainted by the behaviour of a number of unethical firms operating in the market. Reputable firms should do all they can in order to hasten introduction of stricter regulation if it means that rogue operators will be forced out of the market.
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
Why buy from us?
Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.
Buy now and you'll have instant access to the information you need to make the right decisions.
Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.
A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.