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More than 4 million fear they`ll be made redundant Consumers took on more mortgage debt in July Debts called in by parents Teenagers `scared of debt` Rising household costs could pressure people in debt Pensions debt may impact workers` retirement funds Welsh young adults `at highest risk of debt problems` Over 50s can`t afford to enjoy retirement because of debts Budget: tackling the nation`s debt Short-term debt: `no need for price control` The cost of clearing debt Education debt Tackling the national debt Number of mortgage deals on offer exceeds 3,000 Almost 5 million take on debt to pay household bills OECD: household debt more than 120% of disposable income Petrol price falls help people in debt Amount of mortgage debt taken on at lowest level in ten years Northern Ireland sees significant IVA rise Overdraft debt `becoming more expensive`

Chelsea: Household bills eat into savings

11/07/2008

Some British consumers are struggling with bills to the extent they are cashing in their savings, a new survey has indicated.

Chelsea Building Society`s poll said the costs of utility bills and council tax have caused 15 per cent of people to dip into their savings accounts.

The rising price of food has led to 14 per cent using their savings for grocery shopping while 12 per cent have spent their savings on rent or mortgage repayments.

Chelsea`s figures may create worries about future debt problems.

The building society`s director of customer services Darren Stevens described the situation as "a completely new phenomenon".

"We are concerned that many people`s finances are in real trouble due to the growing pressure of rising costs across so many essential items," he said.

Mr Stevens went on to recommend cutting back on spending on luxuries, "sensible budgeting" and saving money for the future.

In related news, this week the Post Office revealed over half of British consumers over the age of 50 are putting everyday expenditure on credit cards.

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according