Debt advice needed following announcements

The government has been urged to be fair with how they deal with cutting the deficit, otherwise poor families could bear the brunt and end up seeking debt solutions.

Imran Hussain of the Child Poverty Action Group has said that recent reforms have failed and that the new government need to learn from their mistakes.

"The Government must make the right choices for the future if it is to meet its pledges on ending child poverty, fair taxes and a welfare system that supports families properly," he commented. "Easy cuts today to family security will backfire, costing us more in the long-term."

This comes after the Queen's speech, which announced a number of cuts to services, as well as the abolition of the Child Trust Fund.

Kevin Still, director of Atlantic Financial Management, says: "For lower income households child benefits may represent a reasonable proportion of their overall income and any threat of cuts in this area would be of concern.

Debt problems can quickly occur if there is a loss of income. The CAB has this week confirmed that 34 per cent of their support requests are debt problem related."

"Grim" future of debt for Brits

16/09/2010

New unemployment stats show a slight drop in the numbers out of work, but there are fears it is the ...

Unchanged inflation, debt link

15/09/2010

Consumers are still being threatened by rising debt levels as CPI inflation stayed at 3.1 per cent i ...

Double dip debt risk

25/08/2010

Britons could find themselves needing more debt solutions in future, after a Bank of England adviser ...

8% interest rate heralds debt concern

24/08/2010

Interest rates need to be brought up to 8 per cent by 2012 in order to battle inflation, even though ...