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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`

Pay rise anticipation `leads to debt`

17/05/2007

Millions of people who are anticipating a pay rise or bonus end up overspending before they actually receive the windfall, according to new research.

Some 3.4 million Britons have been dubbed "money illusionists" by Prudential after a study found that they are likely to spend their pay rises and bonuses before they receive the money.

The average debt accrued by this group is £1,414 apiece, which totals £2.49 billion for the entire group, the report indicates.

Prudential`s business insurance director, Angus Maciver, said: "Pay rises and bonuses ought to be the answer to most people`s financial prayers but in many cases they appear to be putting people further into debt.

"As Britain`s consumer debt levels continue to grow it is vital that people make provision for good times and bad, and we strongly encourage consumers to take financial advice and ensure that they have sufficient protection to enable them to weather any loss of income, as well as enjoying any increase."

Recently, Mintel revealed Britons` taste for luxury, with £23.8 billion spent on overseas holidays and £10 billion on wine and champagne in 2006.

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