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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`

Bank of England: risk of `debt deflation trap`

18/03/2009

The country faces the risk of falling into a `debt deflation trap`, the Bank of England has warned, meaning that families are pushed deeper and deeper into debt.

At the same time, the Bank`s Quarterly Bulletin highlights the danger of deflation, a state of affairs in which prices fall over time - rather than rising, as is usually the case.

It`s a real worry, reminding many experts of the USA`s problems in the 1930s, when prices fell and the burden of debt increased.

After all, inflation means each pound`s worth of debt becomes worth less over time, while deflation means the exact opposite: when average prices are falling, debts will become more expensive over time.

Britain is particularly at risk due to the high proportion of families with high levels of debt, especially as many are paying a fixed mortgage rate, which means they are not benefiting from the Bank`s drastic cuts to the base rate in recent months.

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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