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Consumers `increasingly experiencing debt problems` Over-50s `better at managing credit card debt` New banking rules `may restrict access to loans` UK `must reduce consumer debt` 700k `on Debt Management Plans` Recession `could lead to financial problems for retirees` Charity sees increase in debt, mortgage and loan arrear enquiries Retirees` finances `may be damaged by rate cut` Consumers `aiming to reduce spending` People `increasingly turning to illegal loans` Children raised in credit crunch `may be better able to manage money` Many parents `pushed into debt by adult children` Young people `failing to protect themselves for debt repayments` Consumers in East Midlands `relying less on debt to fund lives` Plans set out to help people in debt PPI ban `could leave consumers without loan cover` Govt `must step in to stop debt addiction` Cash-strapped Brits `see fraud as more acceptable` People `should not rely on mortgage rescue plan` Consumers `to take out £3bn in debt consolidation loans by Easter`

Savings suffer in favour of debt repayment

08/12/2008

The amount of money deposited in savings accounts has fallen as consumers attempt to repay their debts.

This is according to Unbiased.co.uk, which suggested that for every pound saved by UK consumers in the last quarter, £1.24 was put towards covering the cost of debts.

It was also found that during the third quarter of this year, people paid off £23 billion more in debt than they took out in new borrowing.

"Britons appear to have taken drastic actions in an attempt to reduce their debt levels. For the first time in our research, the nation has actually focused on paying off debt rather than accumulating even more," commented Unbiased.co.uk`s chief executive David Elms.

He added that, as a result of the focus on debt repayments, savings levels fell to an all-time low.

In other savings news, the Lincoln Financial Group recently suggested that, due to a lack of stored funds, over a third of workers are resigned to the belief that they will not be able to give up paid work entirely when they reach retirement age if they wish to maintain the lifestyle they desire.

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