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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`

Debt problems `can be caused by failures to understand loan terms`

25/11/2008

People can run into financial difficulty as a result of not understanding the terms under which money is being borrowed, it has been suggested.

According to Richard Marett, chief executive officer of Whizz.com, a lack of mathematical ability can therefore lead to debt problems.

He said: "It`s a combination of not understanding the repercussions of borrowing money at a high interest rate and not understanding the effects of compound growth, so there`s an element of basic mathematics there."

Mr Marett went on to say that some consumers also bury their heads in the sand and decide they will worry about the repercussions of borrowing at a later date.

Both these factors can lead to a problem which "spirals out of control", he added.

Meanwhile, figures produced earlier this month by AXA suggested that 53 per cent of British consumers consider financial concerns to be the most important issue currently facing the country.

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