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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`

First-time buyers take on debt for deposit

30/07/2009

According to a study by moneysupermarket.com, first-time buyers looking to take advantage of the `ailing` housing market by buying a property are taking on debt in order to afford the deposit, pressandjournal.co.uk reports.

More than 1 in 8 of the 18-34 year olds questioned are thinking about buying their first property sometime in the next year, with 16% of them considering taking on debt in the form of a loan to cover the cost of a deposit.

Head of mortgages at moneysupermarket.com, Louise Cuming, said: "Taking out a loan to pay for a mortgage deposit is a dangerous move, and must be avoided even if it means you have to delay buying your first home."

A spokesperson for Debt Advisers Direct commented: "First-time buyers who are looking to take advantage of low house prices should be wary of getting into debt to fund their deposits. We would advise anyone struggling to afford a deposit to consider all the alternatives, such as renting a bit longer, before taking on debt like this."

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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