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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`

Payment holidays `can help consumers pay off debt`

14/03/2007

An increasing number of lenders offering payment holidays on mortgages could help people more comfortably pay off debt, according to new research.

The proportion of mortgages offering such respite has risen from 50.8 to 56.3 per cent over the past six months, a study from MoneyExpert reveals.

Payment holidays, usually granted to long-term customers with responsible financial records, allow borrowers to pause their repayments for a set amount of time.

Sean Gardner, chief executive of MoneyExpert, claims these breaks can offer a reprieve for consumers in their efforts to clear debt, saying: "Homeowners … may be attracted by the prospect of taking a payment holiday to ease the financial burden if things get tough or if their circumstances change."

He cautions that holidays should not be the main attraction when seeking a mortgage deal and that interest still accumulates during the payment break.

Another trend that may demonstrate lenders` increasing flexibility regarding mortgages is the rise of banks offering payment schedules in excess of 25 years.

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