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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: lending to fall this year

18/05/2010

In 2011, we can expect to see an increase in the amount of debt that people are taking on - but before that happens, the amount will actually fall this year.

So says `business information and market analysis company` Datamonitor, in a recent press release.

To be precise, it predicts that gross lending (the total amount lent out) in the consumer credit market will drop from £27bn to £24bn this year, but will climb back to £25.8bn next year.

As a recent Datamonitor survey has shown, people are saving and paying off debt. Last year, they saved £19bn more in the third quarter of the year than they had in the third quarter of the year before. They put more of their disposable income (8.6% of it) into savings than they had in any other three-month period since 1998.

Commenting on the impact of the recession, Roderick Logan, financial services analyst at Datamonitor, said: "The recession caught many consumers by surprise, so they are now working hard to move away from depending on credit, rein in their spending and save. We would expect consumers to save after a recession, but not at this unprecedented level. Therefore with consumers concentrating on saving, the consumer credit market will face significant hurdles."

He pointed out that people are moving on from the recession with "a different attitude to borrowing". 32% of consumers, according to the company`s research, are concerned about their credit card debt.

As Mr Logan suggested, people may be more concerned about credit card debt than other debts because they use their card every day and are therefore more aware of how much debt they`re carrying on it. A loan, on the other hand, is very different - the money has already been borrowed, so people are less concerned about spending it.

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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