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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`

People `should not rely on mortgage rescue plan`

27/01/2009

Homeowners facing repossession should not rely on the government`s new mortgage rescue scheme.

This is according to David Kuo, head of personal finance at Fool.co.uk, who said that the scheme is not designed to provide a safety net to all such people.

He added that, even for those who qualify for assistance, it may take time to arrive due to issues of bureaucracy.

Mr Kuo stated: "There are several things which worry me about this scheme. One is that it may make people complacent - in other words they believe there is a rescue plan there if they lose their job - but the rescue plan is no cure all and there are a number of restrictions on the scheme."

The expert went on to say that people who are made redundant but who have a good track record of repayments may be better off approaching their lenders and discussing alternative plans with them, rather than seeking state aid.

Under the government`s mortgage rescue scheme, not-for-profit housing associations may buy homes from people struggling to pay their mortgage at an independently assessed market price.

These people will then be able to remain in their property as tenants, paying an affordable rent.

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