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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`

Economic situation ‘unlikely to get worse’

16/10/2008

Economic conditions in Britain are unlikely to get any worse, with inflation hitting its peak and several of its key causes looking set to “fade or go into reverse”, a leading expert has said.

The Office for National Statistics (ONS) yesterday revealed September’s official inflation rate to be 5.2% – higher than the predicted 5%. However, a number of economists have said that this is likely to be the peak, as the economy should now begin to slow.

Speaking to The Times, Chief European Economist for Capital Economics Jonathan Loynes said: “September’s figure will be the peak in inflation, and the key issue now is just how far it will drop back, as the food and energy effects which have pushed it up so sharply finally fade or go into reverse.

“Steep falls in inflation will help to restore households’ spending power.”

A spokesperson for Debt Advisers Direct commented: “Falling inflation would be welcomed by all consumers, especially those pushed towards debt by rising living costs, but it’s important to remember that falling inflation does not mean a reduction in prices – it just means prices won’t rise as quickly.

“It’s impossible to predict whether prices of energy and food will come down, or by how much, so it could potentially be months or years before consumer spending power returns to previous levels.

“In the meantime, we urge anyone struggling with debt to seek expert debt advice. The right debt solution, such as debt consolidation, or in more serious cases an IVA (Individual Voluntary Arrangement), could make all the difference to their financial situation.”

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Debt Advisers Direct offer debt help and advice for people in various financial situations. If you are concerned about your debts, contact one of our expert debt advisers today.

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