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Sunday 21st of March 2010

Latest Debt News

The latest news on consumer debt:

February 19, 2010

Senior economists support delay in spending cuts

by Kay Murchie
”Senior
Despite calls from leading business groups to take urgent action with regard to spending cuts, Chancellor Alistair Darling, has received support to delay cuts until 2011. According to David Kern at the British Chambers of Commerce, the UK’s credit rating is being put at risk by the Government’s failure to act more quickly. However, over 60 senior economists have signed two open ...



February 18, 2010

UK finances deteriorate further in January

by Kay Murchie
”UK
The Office for National Statistics (ONS) has today revealed that the UK’s public finances deteriorated last month with net borrowing at £4.3 billion. January is traditionally a strong month for tax receipts - due to income and corporation tax, according to the ONS. However, tax income was lower than expected and it is the first borrowing figure for the month of January since ...



February 17, 2010

Brits in “dangerous habit” of relying on credit

by David Masters
Over 14 million Brits are using credit cards to fund everyday expenses, according to research by moneysupermarket.com. The price comparison site said the reliance on debt to pay for day-to-day purchases is a "worrying trend". Purchasing goods online is the most popular use of credit cards, with 56% of credit card holders using their card for internet shopping. Two in five (40%) credit card holders use their card for day-to-day ...



February 16, 2010

Credit card interest rates soar to 12-year high

by Kay Murchie
”Credit
New research has revealed that millions of credit card holders could face severe debts after card providers have put interest rates up to a 12-year high. The Bank of England’s base rate has been at the historically low rate of 0.5% for almost a year but despite this, average credit card interest rates have risen to over 18% - the ...



February 15, 2010

Greece clashes with EU over austerity measures

by Kay Murchie
Greece clashes with EU over austerity measures
Greece clashed with the European Commission in Brussels today over its tough austerity measures, which will see the debt-stricken economy tackle its spiralling debts. Prior to a meeting with euro zone finance ministers in Brussels today, Greece’s Finance Minister, George Papaconstantinou, said the EU needed to show more support to Greece instead of questioning its measures. Mr Papaconstantinou said: "We're trying ...



February 12, 2010

IMF lends its support for Greece

by Kay Murchie
’IMF
The International Monetary Fund (IMF) has today pledged its support for Greece after yesterday’s declaration from the European Union, which will see the debt-stricken economy tackle its spiralling debts. “We stand willing and able to support Greece in ways that the Greek authorities think is appropriate," IMF First Deputy Managing Director John Lipsky told reporters on the sidelines of an international ...



February 11, 2010

EU agrees to work with Greece over debts

by Kay Murchie
EU agrees to work with Greece over debts
After the summit meeting in Brussels today, EU leaders have agreed to work with Greece to tackle its spiralling debts. Last week, the Greek Government announced tough austerity measures to tackle the country’s spiralling debt. The country’s runaway budget deficit is currently more than four times the EU limit of 3%. It currently has the highest debt of the 16-member ...



Greece’s woes continue as unemployment rate hits 10.6%

by Kay Murchie
Greece's woes continue as unemployment rate hits 10.6%
Greece’s national statistics service, NSS, has today revealed the country’s unemployment rate rose from 9.8% in October to 10.6% in November. There are now more than half a million people unemployed in the country. The figures come prior to the EU summit meeting in Brussels today, which will see European leaders discuss the issues facing Greece. Greek Prime Minister, George Papandreou, ...



February 9, 2010

Debt advice charities overwhelmed with inquiries

by David Masters
Debt advice charities overwhelmed with inquiries
Debt advice charities are struggling to cope with high levels of consumer inquiries about debt management, according to a new report from the National Audit Office. At least two debt agencies are refusing to take on any new clients, the National Audit Office found, while others have waiting lists of up to six weeks for borrowers seeking a face to face meeting ...



February 8, 2010

Greek unions prepare for 24-hour strike amid austerity measures

by Kay Murchie
Greek unions prepare for 24-hour strike amid austerity measures
Greek unions have today vowed to strike on Wednesday to protest against the Government’s austerity measures. Last week, Greek Prime Minister, George Papandreou, announced tough austerity measures to tackle the country’s spiralling debt. Measures include a public sector pay freeze, a hike in taxes and an increase to the retirement age. Spyros Papaspyros, president of the ADEDY public sector union, ...



Sterling falls against dollar over euro zone debt fears

by Kay Murchie
’Sterling
The pound dived to a low not seen since May 2009 today over debt fears in the euro zone. It was the fourth consecutive day of losses and the pound fell to $1.5535 in early London trade - an 8½ month low. The losses came as investors worry about how euro zone economies (including Greece and Portugal) will tackle ...



Ex-IMF economist warns on UK debt

by Kay Murchie
”Ex-IMF
Former IMF chief economist, Simon Johnson, has warned that the UK’s debt levels should be seen in the same category of highly indebted countries such as Greece. Mr Johnson’s was speaking to the BBC about the UK’s debt as the G7 finance ministers discussed the crisis in some of the euro zone economies. Last week, debt concerns in Europe resulted in heavy ...



February 5, 2010

Personal insolvency figures soar in fourth quarter

by Kay Murchie
”Personal
Figures from the Insolvency Service today highlighted the impact that the recession has had on many individuals. According to the organisation, the number of people declared insolvent in England and Wales reached a record high in the last three months of 2009. There were 35,574 people declared insolvent in the last three months of the year - a rise of 24.9% on ...



European debt fears send Asian stocks down

by Kay Murchie
European debt fears send Asian stocks down
Debt concerns in Europe have resulted in heavy falls across Asian stock markets today with Japan's Nikkei index fell nearly 3% and stock markets in Hong Kong, Korea and China experiencing heavy declines. The Nikkei fell almost 300 points to 10,057.1 - its lowest level in two months. Hong Kong‘s Hang Seng Index lost 592.31 points to 19,749.33 in morning ...



February 3, 2010

European Commission confirms support for Greece

by Kay Murchie
European Commission confirms support for Greece
The European Commission has met today to discuss Greece’s tough austerity measures which will see the weakest economy of the euro zone tackle its spiralling debt. The Commission confirmed it will support the country’s plans which include a public sector pay freeze and a hike in fuel taxes. However, the European Commission will closely monitor progress and has demanded an interim report by ...



IFS issues caution to Government in its quest to repair public finances

by Kay Murchie
”IFS
A report by the Institute for Fiscal Studies (IFS) has said the Government needs to be ambitious in tackling the public finances but warned that economic recovery should not be put at "undue risk". The Institute believes an extra £13 billion in tax hikes or spending cuts is required by 2015-16 in order to repair ...



Think tank warns Government to control spending

by Kay Murchie
”Think
Leading economic think tank, the National Institute of Economic and Social Research (NIESR), is warning the Government that if it plans to halve the budget deficit over the next four years, much tighter spending controls are required. In his latest Pre-Budget Report, Chancellor Alistair Darling pledged to significantly reduce the UK's soaring deficit over the next five years, but specific details ...



February 1, 2010

Credit card borrowing soars in December

by Kay Murchie
”Credit
Figures from the Bank of England today revealed that new borrowing on credit cards, loans and overdrafts rose for the first time since June 2009. Consumer credit rose £52 million in December, which surprised analysts who had expected a £400 million fall. For the first time since June, borrowing outstripped the amount being paid back by UK consumers. This was primarily due to ...



January 22, 2010

Beware the TV gold scammers, warns Which?

by David Masters
Beware the TV gold scammers, warns Which?
TV adverts offering people the chance to sell their unwanted gold by post are paying "shockingly low rates", an investigation by consumer advice group Which? has found. Cash-for-gold firms advertising on TV pay an average of just 6% the new retail value of gold, Which? discovered. CashMyGold gave the lowest quote of all, offering £6.43 for a gold bracelet worth £115, ...



January 21, 2010

UK’s public sector borrowing continues to soar

by Kay Murchie
”UK’s
The Office for National Statistics (ONS) has today revealed that the UK’s public sector borrowing hit another record high of £15.7 billion in December. While the figure was less than the £18.75 billion analysts had expected, it was still the highest December figure on record. Overall debt now stands at £870 billion - the equivalent of 61.7% of GDP - the ...