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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 need `history of managing debt` to get mortgage

27/08/2009

First-time buyers are being told to `live on a credit card` to secure a mortgage, thisislondon.co.uk reports.

Apparently, mortgage brokers are telling people with small deposits they have `no hope` of getting a loan if they can`t prove they have a history of managing debt.

Ray Boulger, of John Charcol, said: "My best advice to someone hoping to buy with a small deposit is to live on a credit card. Buy your groceries on it, go out to dinner on it, spend on it what you`d normally spend on a debit card. And make sure you pay it off each month to prove you`re handling the debt."

A spokesperson for Debt Advisers Direct commented: "Besides improving an individual`s credit rating, controlling their spending on a credit card will also help them learn to manage debt effectively."

"However, anyone looking to improve their credit rating by spending on their credit card must be sure that they will be able to afford the repayments, as failing to repay their debt will damage their credit score and can lead to financial difficulties."

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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