Recession is not entirely responsible for debt, says expert

People get into debt when their circumstances change, a UK charity told those looking for the best loan interest rates.

Marianne Clough, national PR officer for Christians Against Poverty, said that it is not as simple as blaming debt problems on the recession as people can get into difficulty for any number of reasons.

"Problem debt mostly happens when people's circumstances change. These are typically job loss, relationship breakdown, illness of someone in the family or bereavement," she explained.

However, she conceded that job losses associated with the recession have not helped the situation.

She told those looking for the best loan interest rates that most people with debts want to pay them off, they just need the right level of support in order to do that.

New research by Alliance Trust Savings revealed that people aged over 65 are facing higher levels of inflation than any other age group.

It found 65-74 year olds have to cope with a rate of inflation which is 16 per cent higher than the headline rate of 4.5 per cent.

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2011-06-17 13:27:44 © Moneyextra.com