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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`

Debt - the 12-month view

04/03/2010

In January, UK citizens - between them - borrowed £500 million more than they repaid, in terms of unsecured debt (credit cards, unsecured loans, etc.).

After we repaid so much debt last year, this may come as a surprise. We repaid more than we borrowed in seven months of 2009 - when 2010 started, our unsecured debts were worth nearly £8 billion less than they were at the start of 2009.

To many analysts, last year`s repayments looked like proof that we were becoming more cautious as a nation: more keen to repay debts and more wary of taking on new debts.

So did January`s figure from the Bank of England indicate that this trend was coming to an end?

Remember that even £500 million isn`t a huge amount of extra debt, on a national level. In 2006 and 2007, for example, (and even during the first six months of 2008) the average month saw consumers take on over £1 billion of extra unsecured debt.

Anyway, this isn`t just about borrowers` attitudes. Lenders` attitudes are also a vital part of this, and lenders have become a lot more cautious about lending money since the economic problems began.

A lot of people are finding it a lot harder to get access to credit - rejections of credit card applications, for instance, have risen substantially since 2007.

When lenders and borrowers are both feeling cautious, it`s no surprise that lending levels go down. Recent figures from the FLA (Finance & Leasing Association) show that its members (who represent almost 30% of all unsecured lending in the UK) provided almost £53 billion of credit in 2009 - 15% less than they had the year before.

As for 2010? Nobody knows yet, but February`s figures should help us see whether January was a `one-off` or an indication of what lies ahead.

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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