NS&I glitch could lead to debt problems

14/01/2010

As many as 8,000 people could face debt problems'>debt problems after a technical glitch at National Savings & Investments prevented some Income Bond holders from receiving interest payments this month.

The government-backed group have apologised for the error, and have written to affected customers, promising to pay the outstanding amount as soon as possible.

However, the news couldn't have come at a worse time for beleaguered savers, many of whom will have been relying on the payments to cover the cost of the holiday season.

Recent research found that nine million Brits paid for the cost of Christmas on their credit card this year.

Kevin Still, director at EuroDebt, said that "systems problems that are not in the consumer's interest seem to be a recurring theme".

He noted that a similar problem with student loan payments late last year had caused widespread "debt misery".

"Many people don't have savings," Mr Still said, "and couldn't survive more than one month without going into debt on key payments. Millions of people are living on a financial knife-edge."

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