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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`

71% of households ‘have less disposable income’

16/12/2008

New figures from the Bank of England show a significant number of households have less disposable income than last year.

Over two thirds (71%) of homeowners and tenants questioned in September reported a fall in disposable income compared with the same month in 2007, according to The Times, with one in three homeowners reporting a drop of £100 or more per month.

Meanwhile, more than 40% of households reported difficulties in paying one or more of their household bills, with 6% of homeowners and 8% of tenants claiming they had already fallen behind.

Nearly 15% of people with credit cards or unsecured personal loans said that their debts have become a heavy burden – the highest proportion since 1995.

A spokesperson for Debt Advisers Direct said: “These figures demonstrate exactly why people need to be extremely careful with their expenditure at present. Wherever possible, any significant fall in disposable income should lead people to cut back on non-essential spending – and failing to do so could result in future debt problems.

“Of course, there are some households whose changing circumstances mean they simply cannot avoid falling into debt – and we urge them to seek expert 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).

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