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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`

`Adverse payment order` increases cost of debt

22/09/2009

According to Nationwide building society, credit card users could avoid overpaying around £500mn in interest a year if their debts were repaid in the right order, The Guardian reports.

Credit card holders are often charged hundreds of pounds extra in interest because their cheapest debts are repaid first. This `adverse order of payments` means the more expensive debts last longer and therefore accumulate more interest.

However, some credit card providers do not operate in this way. As The Guardian points out, Nationwide and Saga use customers` payments to clear the most expensive debts first.

Nationwide has highlighted the importance of moving away from the adverse order of payments. A spokesperson for Nationwide commented: "`Adverse payment order` particularly affects the most vulnerable - those who are facing difficulty and have to transfer debt between credit cards, or need to use their card for emergency cash withdrawals."

A spokesperson for Debt Advisers Direct added: "Credit cards can be a good way of buying things, providing the debt is paid off at the end of the month.

"However, this isn`t always an option - and this issue highlights the importance of looking carefully for the right deal. By finding a deal that allows them to repay their most expensive debt first, many consumers could save hundreds of pounds in interest."

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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