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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`

From mortgage debt to credit card debt - `more pain to come`

12/01/2010

Yesterday, housing and homelessness charity Shelter published research showing that in the last 12 months alone, over a million people had used a credit card to make mortgage / rent payments. Today, an article in The Independent looks at what that figure could mean in the year ahead.

Pointing out that `the cost of credit card interest is, on average, something in the region of three times the price of a mortgage`, the article concludes that `switching home loan debt on to plastic in this way is a short cut to financial disaster`.

Although 2009 saw far fewer repossessions than expected, the article goes on, Shelter`s figures suggest more pain ahead: `While not everyone who uses their credit card in this way has long-term financial problems likely to lead to more serious difficulties,` it says, `you would have to be relatively desperate, at least in the short-term, to go down this route. Many of those people are likely to end up defaulting on their credit card bills, or on their mortgages, or both.`

A spokesperson for Debt Advisers Direct commented: "Higher taxes, reduced public spending, rising interest rates - there are quite a few factors we can expect in 2010 which will limit the funds people have at their disposal, and this is bound to lead to debt problems in many cases.

"Plus, as the figures from Shelter indicate, we`re likely to see a lot of people running into serious financial difficulties which they just managed to postpone last year. Paying their mortgage / rent with a credit card, for instance, can work in the short term, but it`s no long-term solution. Anyone who finds themselves in that kind of situation could really benefit from getting some professional debt advice - and the sooner they do so, the better."

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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