Government told to monitor consumer debt problems
Government told to monitor consumer debt problems
- Wednesday, 25 August 2010The government should keep an eye on the
debt problems of homeowners in the UK and levels of mortgage arrears in order to avoid another credit crunch in the future, it has been suggested.
According to the Citizens Advice Bureaux (CAB), taking early action could help to avoid irresponsible lending and borrowing like that seen in the early 1990s and the subsequent global credit crunch.
The independent charity also urged Whitehall to focus on removing unnecessary and costly bureaucracy as a means of plugging the public spending deficit rather than placing further taxes on those already struggling with
debt problems.
In its submission to the government's Spending Review, the CAB said that a simpler benefits system would not only save the government money, but also remove the "distress" caused to the financially vulnerable under the current system.
"We welcome the fact that this spending review is seeking to involve the public and voluntary sector," said Gillian Guy, CAB chief executive.
"Problems like debt, employment disputes, housing problems, discrimination, hate and gender violence can all spiral if left unaddressed, resulting in more costly solutions as well as mental and physical symptoms [and] long-term deterioration of health."
Earlier this month, it expressed concern over home repossession figures, which showed that 9,400 residences were repossessed in the second quarter due to householders' inability to pay their mortgages.

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