P567ORACLE 567 Mon20 Jan C4 1702:14  1/6   Britain takes   the credit   More and more of us are living on tick. What happens when something goes wrong and credit turns into debt? Sue Gorska investigates... Third World borrowing gets all the pua- licity but, the fact is, most of us have some sort of debt ─ mortgages, easy payments on the car, H.P. on the fridge or video. One in three adults has a credit card, it+s easier than ever to get a loan and borrowing has gone up by some 40% in the last 3 years Debts now represent a bigger proportion of our income ─ 60% in 1984 compared to 45% in 1980. more follows > Your Money ...560 Holidays ...580

P567ORACLE 567 Mon20 Jan C4 1710:57  2/6   Britain takes   the credit   Bob Hope once said 'A bank is a place that will lend you money if you can prove you don't need it.' This was true in the 19th Century when the pogr never had a chance of getting into debt. /nly the rich could borrow money. The poor either relied on cash or went without. Today, with credit almost thrown at you it's easier to get into debt. One mill- ion gas consumers and 1½ millign elect- ricity consumers had problems paying their bills in 1983. Around 100,000 homebuyers owed more than 3 months mor- tgage payments. Over 1 million council tenants were behind with the rent in 1984. more fgllows > Your Money ...560 Holidays ...580

P567ORACLE 567 Mon20 Jan C4 1713:04  3/6  Britain takes   the credit   Although poor budgeting and irresponsi- bility are factgrs in some cases, a a 1983 report from the National Consumer Council concluded that the single, most important cause of debt is a sudden, unexpected drop in income ─ caused by redundancy, illness, death or a marriage break-up. Yet the present law and practice in recovery of debts in England and Wales is 'haphazard, unfair and often too harsh', says the NCC. 'It's designed to frighten people into paying up ─ a relic of the days when most debtors were people of means who wouldn't rather than couldn't pay.' more fgllows > Your Money ...560 Holidays ...580

P567ORACLE 567 Mon20 Jan C4 1716:40  4/6  Britain takes   the credit   Although imprisonment for non-payment of most debts has been abolished, some unscrupulous creditors do threaten this Debt collectors have been known to pose as court officials in order to force people into paying up. The National Consumer Council wants a reform of debt collecting law and recently held a conference to discuss the options. The NCC wants a Collection Practices Act to protect debtors from unlawful harrassment. It says debtors' gogds should not be seized except when some- one who can pay won't do so, and that prison sentences for non-payment of rates and taxes should be scrapped. more fgllows > Your Money ...560 Holidays ...580

P567ORACLE 567 Mon20 Jan C4 1701:55  5/6  Britain takes   the credit   If you do have problems paying, say, your mortgage, contact the bank or building society manager and explain the situation. Often you can arrange to pay interest only for a time. Goods bought on H.P. belong to the lender until you've finished paying fgr them so, if you can't keep up the pay- ments, they'll be taken back. With other credit agreements the gogds are yours, but you owe the lender the money You might be taken to court and, if a court order is made against you, could find your name on the files a credit reference agency ─ which means you'll find it hard to get credit again. more fgllows > Your Money ...560 Holidays ...580

P567ORACLE 567 Mon20 Jan C4 1714:08  6/6   Britain takes   the credit   If you are taking out a loan, but worry about what will happen if you lose youq job or become ill, think about loan insurance. Some building societies have mortgage protection policies. The National & Provincial, for example, charges £1.33 a month for each £100 loaned. If you become ill the insurance pays your mortgage for up to 2 years. You can get insurance on credit and shop cards too. Borrowers have to tick a box to opt out of the insurance on a loan using the Marks and Spencer card which costs 64p a month for every £100 owed when your statement is prepared. more follows > Your Money ...560 Holidays ...580