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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`

£7bn of mortgage debt paid off in Q2

12/10/2009

According to figures from the Bank of England, Britons collectively paid off £7bn of their mortgage debt during the second quarter of 2009, the Telegraph reports.

The figures show that the rate at which borrowers are repaying their mortgage debts is similar to in the first three-month period of the year, when homeowners made `net mortgage payments` of £7.3bn.

According to the paper, `recent falls in house prices and the economic downturn have put people off taking money out of their property`.

Banks and building societies have also tightened their lending criteria, meaning it is harder and more expensive for many people to `extend their mortgage` (taking on more debt, rather than repaying it).

Chief economist at Global Insight, Howard Archer, said: "Extremely low savings rates have made it much more attractive for many people to use any spare funds that they have to reduce their mortgages.

"On top of this, it is clear that many people are keen to improve their personal balance sheets given higher debt levels and the worrying economic situation."

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