credit news

People struggling with credit card debt could be about to receive more support to help repay their borrowings as part of a new agreement between the industry and the government.

The government had previously raised concerns over the credit card industry, believing that borrowers were paying too much interest on their current debts amid a series of cuts in the Bank of England base rate.

A new government report by Sir James Crosby has warned that net mortgage lending is likely to fall below zero by next year, leaving Brits paying back more than what they are borrowing.

The report finds that mortgage lending has fallen by 52% over the past year and it predicts that this figure will only increase as banks and building societies enforce significantly more stringent lending policies.

Amid all the shouting, baiting and arguing in the House of Commons yesterday, Chancellor Alistair Darling managed to put forward a series of changes which, whilst placing the country under record levels of public debt, he believes will help struggling families and kick-start the economy.