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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`

Budget: tackling the nation`s debt

22/06/2010

Today, we can expect the details of the `toughest package of tax increases and spending cuts in a generation`, as the BBC puts it. We`ll find out at 12:30, when Chancellor George Osborne delivers his first Budget.

The deficit of £155bn basically means we`re spending a lot more as a country than we`re earning. Mr Osborne has said the measures designed to tackle that record deficit will be based on fairness, and wealthier people will pay more.

We don`t know the details of the Budget yet, but we know there will be tax rises and cutbacks in spending.

But there will be some good news as well as bad news - for example, around 900,000 low earners will no longer have to pay tax, as the threshold for paying tax will rise £1,000, up to £7,475. This will also mean a tax cut for millions of basic-rate taxpayers.

Many people disagree with the thinking behind the Budget, however, from unions to employer groups. Labour have warned that the poorest people will be hit, and that it`s too early for such severe measures, which could even drive the country back into recession.

Deputy Prime Minister Nick Clegg has e-mailed Liberal Democrat members on Monday evening, telling them that the deficit was a "fiscal bombshell" and had to be dealt with.

"Without action on the deficit, we will carry on racking up unaffordable debts our children will have to pay off," he said.

"We will carry on spending more money on debt interest than we do on our schools. And we will undermine the economic growth needed to create jobs and opportunities for all of us."

A spokesperson for Debt Advisers Direct commented: "Whatever the Budget brings, it`ll mean a lot of people have to make their money go further. This can be particularly hard for people with debts, who have to find the money for their debt payments every month as well as paying for things like their mortgage / rent, food, transport and other living costs.

"Anyone who`s struggling to keep up with their debts should look for some professional debt advice. It could really help them get - or keep - their finances under control."

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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