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Government warns about rising credit card debt Debt - the 12-month view Amount of `bad debt` written off reaches 16-year high Deeper into debt: middle-class poverty Debt taken on by individuals increased in January Debt Relief Order (DRO) rules may be changed Overdrafts: five million Britons `permanently` in debt Mortgage lending drops to decade low The cost of debt falls Two thirds hope to have cleared mortgage debt by 50 40% of people approaching retirement `saddled with debt` Repossession `may be best` for homeowners struggling with debt Bankruptcies in Scotland - the worst may be yet to come Good news for people with energy debts US: new law provides debt-free date More debt taken on than repaid in December Savings rise as consumers pay down debt Household debt `could trigger another downturn` More families could fall into debt with energy companies Recession ends

Economic situation ‘unlikely to get worse’

16/10/2008

Economic conditions in Britain are unlikely to get any worse, with inflation hitting its peak and several of its key causes looking set to “fade or go into reverse”, a leading expert has said.

The Office for National Statistics (ONS) yesterday revealed September’s official inflation rate to be 5.2% – higher than the predicted 5%. However, a number of economists have said that this is likely to be the peak, as the economy should now begin to slow.

Speaking to The Times, Chief European Economist for Capital Economics Jonathan Loynes said: “September’s figure will be the peak in inflation, and the key issue now is just how far it will drop back, as the food and energy effects which have pushed it up so sharply finally fade or go into reverse.

“Steep falls in inflation will help to restore households’ spending power.”

A spokesperson for Debt Advisers Direct commented: “Falling inflation would be welcomed by all consumers, especially those pushed towards debt by rising living costs, but it’s important to remember that falling inflation does not mean a reduction in prices – it just means prices won’t rise as quickly.

“It’s impossible to predict whether prices of energy and food will come down, or by how much, so it could potentially be months or years before consumer spending power returns to previous levels.

“In the meantime, we urge anyone struggling with debt to seek expert debt advice. The right debt solution, such as debt consolidation, or in more serious cases an IVA (Individual Voluntary Arrangement), could make all the difference to their financial situation.”

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Debt Advisers Direct offer debt help and advice for people in various financial situations. If you are concerned about your debts, contact one of our expert debt advisers today.

Government warns about rising credit card debt 05/03/2010 - The latest figures from the Bank of England (BoE) have Debt - the 12-month view 04/03/2010 - In January, UK citizens - between them - borrowed £500 Amount of `bad debt` written off reaches 16-year high 03/03/2010 - The latest figures from the Bank of England (BoE) suggest Deeper into debt: middle-class poverty 02/03/2010 - The recession has also affected a lot of people with