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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`

Pawn shops `are growing draw for debtors`

02/05/2007

As more Britons fall into debt, the pawn shop may be making a comeback as a way to secure quick cash, it has emerged.

A combination of over-stretched credit limits and the high price of gold have led to an increasing number of professionals seeking out pawn shops instead of traditional bank loans, Reuters reports.

The average loan is about £100, according to Des Milligan, chief executive of the National Pawnbrokers Association.

Unlike a bank, a pawn shop does not check a customer`s credit history; however, they still have to pay back the loan at a similar rate to a high street lender.

Stephen Pam, manager of independent Hatton Garden Pawnbrokers in London, told the news agency that the UK`s current debt crisis makes running his business "a totally different ballgame".

"Interest rates are now very low and people over-extend themselves or have big mortgages. That`s when they come to a pawn shop," he said.

British households pay an average of £3,513 in interest on their debts each year, according to credit action.

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