debt news

A quarter of low income households are spending more than 25 percent of their income every month just by keeping up with debt repayments.

New research by thinktank, Resolution Foundation, has shown that households on low incomes with around with an average of £15,800 of disposable income are struggling with debt problems.

A debt ridden couple are planning to give away their house for free as part of a competition in order to offset their business loan debts.

The luxury West Yorkshire house, which has been their home for 11 years, is being used as first prize in a free competition that they hope will raise substantial advertising revenue.

Michelle and Paul Wood came up with the idea of the competition after problems with their luxury chocolate company meant that their debts kept mounting up.

Britons who are increasingly struggling with debt problems during the economic crisis are resorting to extreme measures such as putting their kidneys up for sale, a new report has revealed.

The report by the Sunday Times revealed that at least a dozen adverts have been found on the internet advertising kidneys for sale donors in the UK.

Undercover reporters posed as friends and family members of possible recipients of the kidneys and spoke to five of the donors.

A new poll of 2,000 students has revealed that the majority are expecting to leave university with massive debts they will be unable to repay in the foreseeable future.

Nearly one third of those in the poll believed that they would be leaving university with more than £20,000 worth of debt. A quarter of those polled think that they will rack up debts of up to £15,000.

Only 7.5 per cent thought that they would not have any debt on completing their courses.

The Bank of England warned that families face nine years of saving in order to rebuild their personal wealth but admitted that there was no historical guide as to how the economy would react.

A Bank of England report claimed that as the economy begins to recover, families would need to save around 10% of their income for nine years if they are to return to the personal wealth levels of 20 years ago.