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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`

Mervyn King: “We won’t abandon savers”

09/02/2009

Bank of England Governor Mervyn King is to defend the recent decision to cut the base rate to 1%, according to The Times, following widespread criticism from economists and savers.

In the Bank’s quarterly inflation report, due later this week, King is set to argue that lowering the base rate is in the best interests of savers as well as borrowers, because it will take the economy out of a recession more quickly.

Prior to the cut, some had pointed out that lower rates on savings would have two particularly noticeable effects: existing savers’ incomes would be reduced, and fewer people would be encouraged to save, leading to a decreased cash flow to banks.

This, they argued, would have a negative effect on the economy that could outweigh any positive effects of a base rate cut.

A spokesperson for Debt Advisers Direct commented: “It’s true that savers, particularly those who rely on interest from their savings as a form of income, are likely to be negatively affected by the recent base rate cuts.

“The situation is potentially most serious for vulnerable groups such as pensioners, who may have to get into debt in order to meet their commitments if their savings income is reduced.

“Anyone who does find themselves struggling in the coming months should seek debt advice as early 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