Families have added another £2,500 to their credit card debts and personal loan debts in the space of a year as they struggle with high living costs, a report has warned.
The typical family debt, excluding mortgages, has increased by 48pc to £7,944, equating to just under a third
Companies that offer short-term loans at high interest rates have been accused of “sucking money” out of poor communities by Welsh assembly members.
The Welsh government was urged to work with councils and voluntary groups to promote alternatives to payday loans.
Assembly members expressed concern that it was
A payday loan is a small, short-term loan. These are often approved immediately and the funds deposited into an account within a short space of time, often as little as an hour. With no credit check, practically anyone can get their hands on a payday loan up to £1000 which they pay back on their next
UK Personal Debt Statistics January 2012
Outstanding personal debt stood at £1.451 trillion at the end of November 2011. This is down from £1.455 trillion at the end of November 2010. Individuals owed nearly as much as the entire country produced in the four quarters between Q4 2010
Church of England bishops and Liberal Democrat peers will join to try to win concessions when the House of Lords votes later on a benefits cap.
Ministers are proposing an annual limit on benefits of £26,000 for households in England, Scotland and Wales.
Opponents claim children, especially
Child benefit is claimed by nearly all families with children, regardless of their income.
It is one of the few non-means-tested benefits left, but Chancellor George Osborne has announced it will be axed for better-off parents.
What was announced?
From 2013, the coalition
Plans to stop child benefit next year for families with a higher-rate taxpayer could be “hugely complex”, a tax body has warned.
The Low Incomes Tax Reform Group (LITRG) says the plan could become a tax on marriage.
Claimants, typically mothers, receive £20.30 a week for a
Payday loans are being presented as a problem again.
Insolvency experts predict that more people who are short of money are going to turn to the High Street shops – and their rivals who advertise on the internet, on TV and in newspapers – for a short-term loan.