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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`

Low-income families at risk of Christmas debt

24/11/2008

A charity has warned that low-income families who rely on credit to fund their festive period could face a ‘debt disaster’.

A survey by Action for Children, in conjunction with ICM and Barclays, found that 49% of people on the lowest incomes are at risk of borrowing more than they can afford because they don’t understand what APR means – and how a higher APR will affect their repayments.

The survey also found that one in four people planning to borrow over the festive season are planning to use catalogue credit, while a fifth are planning to use store cards and one in seven are planning to go to doorstep lenders – all of which typically charge high APRs.

A spokesperson for Debt Advisers Direct commented: “Low-income families should be particularly careful not to get into debt over the festive season. Christmas is traditionally a time of excess and it’s important to ensure that this does not spill over into their finances.

“The best course of action is for consumers to search for bargains and stay within their means – and if anyone does find themselves in debt, it’s essential that they seek debt advice as soon as possible.”

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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

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