Press Release

PAY RISES ARE OFF THE AGENDA FOR 84% OF FAMILIES IN 2009

Latest Equifax report reveals the real pressures on family finances

London, 2nd March 2009 - According to the latest report* from leading instant online credit information provider, Equifax, the pressure on the finances of British families is being made considerably worse by a virtual countrywide freeze on pay rises as well as a loss in overtime or shortened working weeks.

"Our latest survey amongst customers of our online credit report services shows that financial pressures are hitting families and individuals right across the social spectrum", confirmed Neil Munroe, External Affairs Director, Equifax. "84% of respondents to the survey, conducted at the end of February, reported that they have not yet received a pay rise in 2009. And over a third of respondents (36%) expect to earn less this year because of a loss of overtime or a shortened working week.

"These figures illustrate the increased pressure on family finances at this time, which are further exacerbated when you look at the level of short-term debt being managed by these individuals."

40% of respondents to the survey say they have short-term debts of over £5,000, with 37% saying they pay off less than 25% of these short term debts each month. That's credit cards, store cards, personal loans, etc. These are the first debts to fall by the wayside if an individual is struggling to make ends meet.

However mortgage payments could also be at risk. Over 80% of respondents to the Equifax survey were homeowners with 40% of these on fixed rate deals and therefore not benefiting from recent interest rate drops. 20% believe they are in negative equity as a result of the house price slump in the last year and 24% are concerned that their home may be repossessed.

There is, however, a good recognition of the importance of communicating with lenders, with 78% of homeowners saying they would contact their lender if they felt their financial circumstances might put their home at risk.

"A recent report released by the Citizens Advice Bureaux stated that 45% of homeowners had mortgage or secured loans arrears - a 15% increase on the last report in 2004," concluded Neil Munroe. "But whilst this figure is worrying, combined with our own research, it does appear that consumers know they need to seek help when facing financial difficulties, rather than simply burying their head in the sand.

"The key is to ensure they have the resources to access for that help - including good debt advice in the lender organisations."

Neil Munroe, External Affairs Director of Equifax is available to comment on the impact of debt on families. He has extensive experience and expertise on this and other key issues surrounding consumer credit and consumer credit information and is available to provide specialist commentary and guidance.

ENDS

*Equifax surveyed more than 545 customers of its consumer credit information services, March 2nd 2009

For interviews with Neil Munroe or further information please contact Elinor Puzey, Louise Fowler or Cecile Stearn at the Equifax Press Office: HSL on 020 8977 9132 or email louise@harrisonsadler.com