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Financial Secretary talks about debt
Mark Hoban MP, Financial Secretary to the Treasury, recently gave a speech at the Consumer Financial Education Body (CFEB) Conference, in which he stressed the need for a responsible approach to debt and other aspects of personal finance.

Taking action on personal finance was, he said, one of the Government`s priorities, and one that featured strongly in the Emergency Budget and the Coalition Programme for Government.

Everything in those two documents, he continued, is based on freedom, fairness and responsibility - the three `core values`.

"Each of these values is fundamental to our approach to consumer finance, but today I would like to emphasise one aspect in particular, that of promoting responsibility in personal finance."

Mr Hoban`s speech dealt with the subject of debt, pointing out that in 2008, household debt in the UK was 99.9% of GDP (Gross Domestic Product - a measure of the country`s productivity). In Germany and France, the figures were just 61% and 50% respectively.

And many of the Britons in debt were in arrears, to the tune of £1,100 on average.

On top of high levels of debt, there were low levels of saving - 2008 was the first year since 1950 that household saving had actually been negative. Almost 50% of households had under £1,500 in savings before the crisis occurred, while over 25% of households had no savings at all.

"Over the summer," Mr Hoban said, "we will be taking a good look across Government at the support we currently provide for debt advice as a part of the Spending Review. We will be working with CFEB to make sure that the work of the National Financial Advice Service is joined up with the work of debt advice services in the most effective possible way."... >>

Holidaymakers taking on less debt by `staycationing`
Almost four in ten (38%) Brits aim to spend less money on holidays this year, according to a new survey from insolvency trade body R3.

More than half of those aiming to spend less have also decided not to go abroad in order to reduce the overall expense.

R3 Vice-President Frances Coulson said: "The current trend for staycations has been around for a few years, but the research highlights that the staycation`s popularity has grown as a result of necessity, rather than choice. Quite simply, many people can no longer afford to spend as much on their holidays as before."

A debt expert at Gregory Pennington commented: "The financial climate over the last couple of years has led a lot of people to reassess their finances. For many, this means cutting back on the non-essentials, such as holidays.

"It`s common for people to take on debt to go on holiday, and it may well be that many people have simply decided that they want to stay in the black this year."... >>

Mortgage lending falls while unsecured debt is repaid
According to the latest figures from the British Bankers` Association (BBA), mortgage lending by the major UK banks fell in June, while more unsecured debt was repaid than taken on, the BBC reports. ... >>

Energy debt statistics raise concerns
According to uSwitch.com, statistics on energy debt and disconnections from Ofgem `raise growing concerns about the affordability of energy in Britain today`, headlinemoney.co.uk reports. ... >>

Rising cost of living puts pressure on people in debt
Average costs of living have increased by £642.12 in the last 12 months, according to research from Confused.com - adding to the financial pressure on struggling borrowers. ... >>

Britons taking on debt to pay for holiday
Research by moneysupermarket.com has found that more than five million Britons heading on holiday abroad this summer plan to take on debt to pay for their trip by using their credit card, headlinemoney.co.uk reports. ... >>

New proposals to ensure people can afford mortgage debts
The Financial Services Authority (FSA) has outlined proposals to make sure borrowers can afford to repay their mortgage before taking the debt on. ... >>

`Debt, divorce and death` strain family finances
An article in the Guardian highlights how the financial costs of the `3Ds` - debt, divorce and death, can `put enormous strain on families`. ... >>

Bank of England: second `credit crisis` on the way
The Bank of England has predicted the first contraction in the supply of credit since the height of the financial crisis. ... >>

`Era of debt-financed consumer spending` is over
The `era of debt-financed consumer spending is over`, according to Tim Moss of moneysupermarket.com. ... >>

Over ten million people `get into debt to fund holiday`
32% of adults going away this year are getting into debt to fund their summer holiday, research from Bright Grey has found. ... >>

Differences in debt - insolvency figures per region
Today, personal insolvency levels are at a record high as people struggle to cope with record levels of personal debt and the many problems caused by the financial crisis. ... >>

Debts preventing people from enjoying retirement
Research by Saga Equity Release has revealed that almost a fifth (17%) of over 50s are left with little money to enjoy their retirement once they have cleared their debts, while over two fifths (41%) of retirees find paying off their debts difficult, headlinemoney.co.uk reports. ... >>

Gregory Pennington is a member of DEMSA whose code of conduct is approved by the Office of Fair Trading.