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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`

Building societies urge BoE not to cut base rate

03/02/2009

The Building Societies Association (BSA) – the trade body for all of Britain’s building societies – has called for the Bank of England to hold off from cutting the base rate following this week’s Monetary Policy Committee meeting.

Many financial experts have predicted a 0.5% cut to 1% this week as the Bank attempts to stave off potential deflation and encourage lenders to offer more loans and mortgages.

But the BSA argues that another base rate cut would also lower rates on savings accounts, therefore discouraging savers, which could put consumers at higher risk of financial problems, including debt.

Other experts have already speculated that this would also reduce the cash flow into banks and building societies from savers’ deposits, meaning that they would have less money to lend.

A spokesperson for Debt Advisers Direct said: “Consumers who are discouraged from saving by low interest rates are potentially putting themselves at risk. Savings are a very important aspect of any household’s finances, especially if financial emergencies arise.

“Without savings, emergencies can soon lead to debt problems – and if that happens, it’s vital to 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