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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 Debt defaults lower than expected Britons take three months to clear Christmas debts Budgets to be `squeezed` in second half of 2010 Irish Reduce debt Teenagers concerned about parents` debt Homeowners reduce mortgage debt Advice issued to help people avoid Christmas debt Mortgage lending falls 10% in November Cost of new mortgage debt drops Families facing debt this winter `Upsurge` in homeowners struggling to service mortgage debt Cost of debt - CFA wants `level playing field` Debt news: Britons `more inclined` to spend than save Pre-Budget Report `fails to ease debt fears`

Debt warning as recession continues

02/11/2009

According to figures from the Office for National Statistics (ONS), the economy shrank by 0.4% in the third quarter of 2009, dashing hopes that Britain had come out of recession, the Telegraph reports.

The figures show that the economy has now contracted for six straight quarters - the longest run since records began in 1955.

Meanwhile, Thursday`s retail sales figures showed that consumers were focusing on cutting back their debts and adding to their savings, rather than spending.

James Shugg, an economist at Westpac, said: "There will be retrenchment as households pay down debt." He went on to say that "the economy still needs quite a lot of support".

A spokesperson for Debt Advisers Direct commented: "In light of the news, it is important that people remain careful with their finances and act fast to tackle any outstanding debts.

"As the recession continues, and economic conditions remain difficult, we may see more people struggling with their finances and falling into debt. We would advise anyone who does run into debt problems to contact a professional debt adviser without delay."

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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

US: new law provides debt-free date 02/02/2010 - Thanks to a new law, credit card providers in the More debt taken on than repaid in December 01/02/2010 - According to figures from the Bank of England (BoE), in Savings rise as consumers pay down debt 29/01/2010 - According to a survey of 13,000 savers by ING Direct, Household debt `could trigger another downturn` 28/01/2010 - The high level of debt carried by the British public