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Debt causes hardship - a selection of news stories
Britons are biggest
debtors in Europe
Britons are responsible for a third of all unsecured debt in Western Europe,
with each of us owing an average of £3,000, according to a new report.
(Telegraph, 27 Sep 2006)
Retirement debt crisis faces credit card pensioners
Almost half of adults are expecting to continue using credit cards when they retire, raising fears of a debt crisis among pensioners. (Telegraph, 14 Sep 2006)
Government moves to tackle debt mountain
The Government has stepped in to help tackle Britain's £1,200bn consumer debt mountain, unveiling plans to fund more free advice and improve consumers' financial knowledge.
The plans, outlined in a cross-Government report Tackling Over-Indebtedness 2006, include a commitment to introduce basic financial skills into the GCSE maths curriculum in England from 2008 and £51m to fund 500 more staff offering free advice to people who are struggling to pay off massive debts. The National Debtline and Consumer Credit Counselling Service will also be expanded. (Telegraph, 17 Aug 2006)
Britons go bust at rate of one per minute
One person is falling victim to insolvency every minute of the working day and home repossession applications show the biggest rise since the early 1990s housing crash. (Telegraph, 5 Aug 2006)
Barclays' bad debts soar to £1bn as card customers struggle to pay
Bad debts at Barclays bank surged to more than £1bn over the first half of the year, an increase of 50%, as its Barclaycard customers struggled to repay their mounting credit card bills. (Guardian, 4 Aug 2006)
Who's to blame for Britain's soaring household debt?
The British public has put £54bn on credit cards and taken billions more in personal loans. Add on mortgages, and the nation's total household debt tops £1,000bn. The crunch is coming, but who's to blame? (Telegraph, 4 Aug 2006)
Forget the rising bills, we've never had it so good
If you choose to believe the official statistics, we have never had it so good: incomes are rising, inflation is low and the British economy is enjoying its ninth year of Labour-induced stability and prosperity. (Telegraph, 25 Feb 2006)
Why pensioners are feeling the pain
The official rate of inflation, according to Bank of England figures, has fallen to just 1.9%. But try telling that to pensioners on fixed incomes, clobbered by soaring energy bills and, it was announced this week, a fresh round of increases in council tax and water rates. (Guardian, 25 Feb 2006)
Bankruptcies show sharp increase
Nearly 70,000 people became insolvent in 2005, the highest since records began, the Department of Trade and Industry (DTI) has said. (BBC, 3 Feb 2006)
The heat is on to save energy
Emma Lunn looks at some of the best ways to fight climate change - and cut your fuel bills. Even something as painless as setting your thermostat one degree lower can save you £30 a year. (Telegraph, 26 Oct 2005)
Basic accounts 'fail poorest'
Basic bank accounts are failing to meet the needs of around half the country's poorest, according to the National Consumer Council (NCC). (BBC, 23 Aug 2005)
New credit rules help clarify loans
New rules to make it easier for consumers to shop around and compare different loans came into force today. (Guardian, 31 May 2005)
UK debt is at 'time bomb' levels
UK personal debt levels are a "time bomb" that pose a threat to millions of households, a report commissioned by the Conservative Party has found. (BBC, 20 Mar 2005)
Woman to lose home after loan for kitchen soars
A woman who took out a £10,800 loan in 1987 for a new kitchen says she will have to sell her home to repay the debt.
Amanda Jonkler, 55, spoke bitterly yesterday of her regret at taking out the loan, at an interest rate of 29.3 per cent, at a time when she had divorced and was struggling to cope financially. (Telegraph, 24 Nov 2004)
Debt woman 'no idea' of interest
A woman who took out a loan for £5,750 which spiralled to £384,000, has said she had "no idea" how much the interest was mounting. (BBC, 28 Oct 2004)
Couples not compatible with each other's money
Women are clinging on to their traditional role in controlling the family purse strings, according to research indicating that they still look after the bills in more than two thirds of couple households. (Times, 23 Apr 2004)
Credit card marketing condemned by charity
Citizens Advice, the nationwide charity which gives free advice to people in financial difficulty, this week accused the major credit card companies of "irresponsible marketing". (Independent, 3 Apr 2004)
House prices feed debt
Homeowners cashed in on the rising value of their properties at breakneck pace last year, taking out £53 billion to spend on foreign holidays, home improvements and credit card repayments. (Times, 2 Apr 2004)
Savings war looms at last
If you have never formed a saving habit, now is probably the time to stop making excuses and get started. (Observer, 14 Mar 2004)
Society 'living on borrowed money'
Just over half of people plan to borrow money during the next 12 months, expecting to go into the red by an average of £3,997, new research has claimed. (Ananova, 8 Mar 2004)
Government squares up to exploitative lenders
Consumer bodies have welcomed the government's plans to crack down on unscrupulous lenders, announced in today's consumer credit white paper. (Guardian, 8 Dec 2003)
Overspending sends Britons sliding into debt
Britons cannot resist temptation, even if they have to borrow to get what they want, a report out today showed. (Guardian, 25 Nov 2003)
The dos and don'ts of debt
1. Don't bury your head in the sand: Your debt will not go away. You must tackle the problem before it escalates out of control. ... (Guardian, 13 Sep 2003)
Store cards 'fleecing customers'
Credit card companies behind expensive store cards have been accused of being "designer loan-sharks" by a committee of MPs. (BBC, 14 Jul 2003)
MPs lambast card issuers
Credit card bosses are encouraging consumer debt by allowing customers to "tiptoe to disaster", according to the chairman of the Treasury select committee, John McFall. (Guardian, 10 Jul 2003)
How can I manage my debt
Debt is a fact of life for many people but there are ways you can avoid getting into problems and escape them if you are struggling with repayments. (BBC, 12 Feb 2003)
Day of reckoning may be approaching soon for a nation up to its ears in debt
A nation of home owners mortgaged to the hilt; property prices poised on the brink of possible collapse; unflappable consumers continuing to pile up debts on their credit cards as if there was no tomorrow. (Independent, 22 Jan 2003)
Six million families face struggle to pay off debts
One in four households, or more than six million families, have borrowed too much and are struggling to meet their monthly interest payments, according to the Financial Services Authority. (Telegraph, 22 Jan 2003)
Don't give presents at Christmas says charity
A financial-counselling charity is urging people to give gifts money just can't buy so that they don't get into debt. (Ananova, 19 Dec 2002) Consumer Credit Counselling Service.
Credit debt increases by half in five years
The British "lust for credit" means that the average adult owes £3,383 on credit cards and in other loans, latest figures reveal. (Telegraph, 13 Dec 2002)
'Quarter of households in financial difficulty' - report
A quarter of all households have been in financial difficulties during the past 12 months, according to Government research. (Ananova, 28 Nov 2002)
Equity withdrawal gallops ahead
Households are borrowing record amounts of cash against the value of their homes to finance the biggest spending binge since the end of the 1980s, according to figures yesterday from the British Bankers' Association. (Guardian, 26 Oct 2002)
Borrowers' binge goes on
DEBT-HUNGRY consumers continued to borrow record amounts last month, taking on new loans that are set to fuel the high street shopping boom and the house price boom. (Times, 19 Oct 2002)
Christmas shoppers 'wasting millions on extended warranties'
Shoppers stand to lose about £50 million in the run-up to Christmas on expensive extended warranties on electrical goods, an insurance company claims. (Ananova, 16 Oct 2002)
Credit card debt reaches new heights
Credit card debt has increased by 16% in the last year according to a new survey. (BBC, 13 Sep 2002)
Consumers spend £285 billion on plastic in 2001
A new report says Britons spent £540,000 a minute on their plastic last year as the popularity of credit and debit cards continued to soar. (Ananova, 9 Aug 2002)
Brits owe biggest debt on smallest homes
... UK households have a total of £1,375bn outstanding in mortgage debt - equivalent to £53,950 for every family in the country. In Italy, that figure is only £9,326 per household. (Guardian, 15 Jun 2002)
Britons owe £4bn to family and friends, says survey
A survey claims that Britons owe family and friends £4 billion. Research by MSN says around 19% of Britons are owed up to £500 as a result of outstanding debts with friends and relatives. (Ananova, 23 May 2002)
Financial ignorance 'could be costing people millions'
Ignorance over Britons doubting their abilities to handle their finances could be collectively costing them millions of pounds a year. (Ananova, 30 Mar 2002)
Beware 10 of the poorest products
There are many poor-value deals in financial services. David Budworth lists the worst and offers alternatives. (Sunday Times, 24 Mar 2002)
Pawnbroker banks more profit as demand soars
Albemarle & Bond says demand for pawnbroker services is thriving as it posts a 53% surge in profits. (Ananova, 11 Feb 2002)
Today's way to deal with debt - go bust
We're going bust but we don't care. Personal bankruptcies are on the increase and a leading expert on insolvency believes a rising number of people may be choosing to go bust officially as a way to deal with debt. (Observer, 10 Feb 2002)
OFT cracks down on debt managers
A series of guidelines have been published in a bid to stop people being exploited by debt management companies.
...Debt management companies charge a fee for negotiating with creditors to reduce monthly repayments for consumers through such measures as freezing interest or extending the period of the loan. (Ananova, 4 Dec 2001)
Parents debt warning over Christmas
A children's charity is urging parents to avoid huge debts this Christmas by resisting the temptation to overspend on presents for their sons and daughters. (Ananova, 3 Dec 2001)
Personal debt at new high
British consumers and home buyers took advantage of cheap credit to stack up record new borrowing last month, as confidence bounced back from post-September 11 lows. (Guardian, 30 Nov 2001)
How our ignorance allows the providers to cash in
All consumers would benefit from more effective protection against the abusive practices of the financial services world, not just the low paid or less educated, says a new report from the National Association of Citizens Advice Bureaux (Nacab). (Guardian, 24 Nov 2001)
Many consumers 'financially illiterate'
Consumers are losing more than £10bn a year because they are unknowingly buying financial products not suited to their needs, says a report. (BBC, 21 Nov 2001)
Low income debt cycle 'includes 900% loans'
A new report says people on low incomes are becoming trapped in a cycle of debt, taking out loans with 900% interest rates because they cannot get credit from banks. (Ananova, 13 Nov 2001)
Debt dangers
How serious is the problem of debt in the UK? Increasingly bad, it seems. Figures from the Bank of England last month showed total consumer debt had reached more than £700bn for the first time and 23,000 homes were repossessed by mortgage companies in 2000. (Guardian, 12 Nov 2001)
Don't borrow, be happy
Rule number six in Robert Louis Stevenson's "A Pattern for Living" is "Do things you enjoy doing, but stay out of debt." If, to judge by the continuing high level of consumption, the Great British Public seem to be heeding the first part of that, they are resolutely disregarding the second. (Independent on Sunday, 28 Oct 2001)
Clearing debt 'a bigger problem than smoking'
Many Britons find it easier to give up smoking than to get out of debt, according to new research. (Ananova, 6 Oct 2001)
Clear your debts
Before you even think about saving, you should try to clear your debts. Not even the best savings rate on the market comes close to the interest being charged on the outstanding balances on many credit cards. (Guardian, 16 Aug 2001)
Big banks exploit bereaved families
HIGH-STREET banks are exploiting bereaved families by charging thousands of pounds over the odds to manage customers' estates. (Sunday Times, 12 Aug 2001)
How to make your bad debts worse
Paying a debt management company to get you out of trouble can be hazardous to your financial health. (Independent, 11 Aug 2001)
New light on the shadow of debt
... Consumers get a raw deal in several ways: extortionate credit deals, irresponsible lending, 0 per cent interest deals with a sting in the tail, small print on credit agreements, marketing come-ons, and lenders using intimidation techniques. Then there is the general problem that the regulatory regime for consumer credit hasn't kept up with the rapid growth rate of the industry. (Observer, 29 Jul 2001)
Big rises for Camelot shareholders and directors
Lottery firm Camelot had total income of £5 billion last year. Directors received £3.7 million. (Ananova, 26 Jul 2001)
Crackdown on loan sharks to beat debt trap
A crackdown on loan sharks and new measures to encourage more responsible lending and borrowing were yesterday unveiled by the government in an attempt to halt a "worrying" rise in the number of people falling into the debt trap.
The package of proposals includes new powers to fine rogue lenders as well as stripping then of their credit licences, and revamping the consumer credit legislation so that the protection it offers is extended to many more loans. (Guardian, 26 Jul 2001)
Don't sign on the dotted line
Buy an item of clothing from a high-street store and you'll invariably be accosted by a sales person trying to get you to sign up for a store card. A 10 per cent discount on purchases made that day is often used as a sweetener and seems like a reasonable offer. But is it? (Independent on Sunday, 15 Jul 2001)
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