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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`

Consumers "should`t be pushed to take on more debt"

03/08/2007

Lenders should not "incentivise" consumers to take on more debt than they can repay, an expert has claimed.

Martyn Saville, senior researcher at Which? said that responsible lending could help consumers stay clear of debt problems, particularly regarding store cards - which usually carry an APR that is higher than a conventional bank-offered credit card.

"You should only take out a store card to get a discount if you can repay all the money when you get your first statement, as this means you avoid paying any interest," he advised.

Additionally, Mr Saville remarked that all patterns of a consumer`s borrowing habits should be assessed by lenders before offering credit.

"Consumers should also not be unduly pressurised or incentivised to take on additional debt, be it through marketing [or] unsolicited credit limit increases," he commented.

Some 11 million Britons own a store card and they are estimated to cost a total of £55 million per year in interest payments, according to Moneyfacts.co.uk.

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