Families facing winter debt

04/12/2009

The effects of the recession are fuelling further borrowing; families will fall further into debt to buy warm clothes and food this winter.

That’s according to research by charity Save the Children, who says people will have to cut back on Christmas presents and basic essentials like heating to get through.

They claim that the majority of parents earning less than £30,000 will struggle to manage with more than half saying they would consider turning to high interest debt to cover costs.

Save The Children's concern is that the worst-off families often have to borrow to cover unexpected costs such as a broken washing machine, or essentials like increased winter heating bills and have fewer opportunities than better-off people to access affordable credit.

Kevin Still Director of debt solutions Company EuroDebt says "Borrowing more at higher interest rates is probably not the solution.

If you have already squeezed your household budget and are protecting essential expenditure like your mortgage, rent, council tax and utility payments then it may be time to take professional advice, even if it is only for a transitional period.

Unexpected costs and loss of income are very common reasons for people to start Debt Management Plan'>Debt Management Plans (DMP) with EuroDebt."

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