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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`

Consumers taking on less credit card debt

15/04/2010

UK consumers might be spending more than ever on plastic, but we`re actually taking on less credit card debt than we were back in 2005.

Back in 1999, we collectively spent £65bn using our debit cards, says the Payments Council (the organisation which `sets strategy for UK payments`). Last year, we spent £264bn using our debit cards, and by 2018 this figure is expected to rise to £490bn.

The new report, The Way We Pay 2010, looks - as you`d expect - at the different methods we use when we`re paying for things. It reveals that a `payments revolution occurred in the noughties` and it`s due to carry on throughout this decade as well.

Internet banking and shopping took off in the last decade, but that wasn`t the only major change. This was also the decade when cards `took control of our wallets`, increasingly pushing out cash and cheques.

In particular, the report points to the rise of the debit card. While credit card usage has fallen over the last five years in real terms, debit cards have `become the payments workhorses`, used when people buy low-cost items as well as expensive ones. By 2018, the Payments Council estimates, one in every four transactions will be made using a debit card.

"This move towards debit cards has to be seen as encouraging," said a spokesperson for Debt Advisers Direct. "Credit cards, used wisely, can be a great way of paying for things, but it`s important to remember that a credit card balance is a debt. As long as the cardholder can repay that debt, this isn`t a problem - but it`s easy to run up debts that are larger than expected, that the cardholder has difficulty repaying as quickly as they`d expected. This is where the interest can really start adding up.

"Debit cards, on the other hand, mean people are spending money they already have (with the exception of people using their overdrafts), which obviously makes budgeting easier and helps them steer clear of debt problems."

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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