Home > News > Debt advice

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`

IMF: lending could cost financial system £100bn in bad debts

13/08/2009

Estimates provided by the International Monetary Fund (IMF) suggest that lending to British consumers could cost the financial system over £100bn in bad debts before the recession comes to an end, The Times reports.

According to figures from the Bank of England, Britons owe around £1.46tn - most of which (£1.23tn) is made up of mortgage debt, while £54.5bn is owed on credit cards.

The credit rating agency, Moody`s, revealed that on average, British credit card companies are writing off around 10% of their debts - a 50% increase on a year ago.

Experts have been left uncertain as to what the `looming flood of bad debt` means for the `big banks`.

A spokesperson for Debt Advisers Direct commented: "At a time like now, many people will have suffered a drop in their income - which may make it difficult for a lot of them to meet debt repayments.

"Anyone struggling with their debts should contact a professional debt adviser without delay."

---

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