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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`

‘Early warning system’ to warn of potential debt problems

19/02/2009

Some major lenders are using an ‘early warning system’ to see who is likely to default on their debt repayments in the future.

As The Times reports, the system assigns consumers an ‘over-indebtedness score’ of 1-1,000. This is based on ‘their credit history and current commitments, the change in the level of debt over the last 12 months and the ratio of debt commitments to monthly income’.

Developed by credit reference agency Callcredit, the system aims to show which borrowers are at risk of falling into arrears on a mortgage or loan, receiving a County Court Judgment (CCJ) or becoming insolvent.

So far, Halifax, Lloyds TSB, HSBC and the Royal Bank of Scotland have signed up to the initiative.

“Lenders are adopting a more cautious approach to risk generally and may be applying criteria more cautiously,” said Bernard Clarke of the Council of Mortgage Lenders. “There is a reduced appetite for risk so having reliable details about credit applicants enables lenders to make informed decisions about consumers.”

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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