Post by nickd on Apr 22, 2011 15:08:35 GMT 1
Debt will hit £84,000 a family in four years as mortgages and credit cards push borrowing to record levels
By Becky Barrow on 22nd April 2011 Daily Mail says...
"Families will be crippled by a spiralling debt crisis over the next four years, equal to an average of £84,000 per household, figures revealed yesterday.
By 2015, total household debt from mortgages to loans and credit cards will hit a record-breaking £2,126billion.
The debt mountain is laid bare in documents published by the Government’s spending watchdog, the Office for Budget Responsibility.
Spiralling: Mortgages and credit cards are expected to push UK debt to £84,000 per household, figures have revealed
It has massively increased its forecast for the size of Britain’s debt in recent months. At present, the total household debt is £1,628billion, but the OBR forecasts it will grow every year until the end of the Parliament. The OBR says some of the blame lies with the Government’s austerity drive and its devastating impact on families.
Spending: Credit cards have accounted for part of the debt
Last June, the OBR forecast household debt would be £1,823billion in 2015. Last month it upgraded this forecast by £303billion.
Earlier this month a long list of tax rises and benefit cuts were implemented.
The OBR report published yesterday raises fears about families who have no choice but to resort to increasing their debts. Labour’s treasury spokesman David Hanson said: ‘Hard-pressed families will have to borrow more money to deal with the effect of George Osborne’s tax and benefits squeeze.’
One of Britain’s biggest debt advisers, Consumer Credit Counselling Service, said many people simply do not earn enough.
The typical Londoner who contacts the service has a monthly disposable income of £1,259, but their ‘basic’ bills add up to £1,286.
A spokesman for the CCCS said: ‘It is all the little pressures that are adding up to hurt households, and erode their income.’"
With this latest evidence from the Government's Office of Buget Responsibilities, it's madness to even think about axing debt advice to those facing such financial difficulty.
Read the on line blog which accompanies the article and then ask yourself - whilst, Daily Mail boggers play the 'Blame Game', who are the best people to sort this out?
It's not rocket science to work out that regardless of who caused this, it's a problem which needs sorting. The best people are skilled debt advisers who don't look at blame, they look for a SOLUTION TO THE DEBTOR'S PROBLEM.
Isn't that what we really need?
Read more: www.dailymail.co.uk/news/article-1379439/UK-debt-hit-84k-family-4-years.html#ixzz1KGD5JyLW