This week's Money News

09/10/2009

Hello I'm Daniel Ohio and you're watching Money News. The must-watch bulletin for everything affecting your personal finances.

Debt charity Credit Action has warned consumers about the pitfalls of taking out pay-day loans as a financial quick fix as they can be anything but.

Chris Tapp told Sky News that many people are in the dark as to what the APR on these loans is, adding that people can get caught in a debt spiral which they will find very difficult to get out of.

Meanwhile, the Advertising Standards Agency has come down on loan company QuickQuid for a TV advert promising instant loans but making no mention of the 2,356 per cent interest rates some people may have to pay.

Those approaching their retirement may be forced to stop working while owing thousands of pounds to creditors.

Debt solutions firm EuroDebt claims one in three of its clients over 60 still have mortgage debt, with average unsecured debts of £40,000.

EuroDebt director Kevin Still warned that the over 60s could be saddled with debt mountains, which could threaten both their home and their savings.

There was mixed news in the mortgage market this week, with figures from the Bank of England showing that people in Britain reduced their mortgage debts by a collective £7 billion in the second quarter of the year.

Meanwhile, broker John Charcol has warned more than 100,000 people with tracker mortgages face steep increases in their repayments when the majority of deals come to an end this autumn.

The company claimed that some people could end up paying an extra £500 a month to meet the costs.

Thanks for watching today’s Money News. If you’d like to take control of your finances, take the Debt Calculator test on our website to see where debt management solutions can help you.

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