Advertising blamed for growing debt

www.moneynews.co.uk > Debt > Advertising blamed for growing debt

Advertising blamed for growing debt

Thu 28th Dec 2006

Advertising is being blamed for increasing debt levels, according to a leading debt advice organisation.

Paul Latham, the co-founder of Debt Free Direct, speaking on BBC Radio Five Live's Wake Up to Money explained that inappropriate advertising could be increasing problems for many consumers, especially during the festive period.

Instead, Mr Latham suggests that those concerned with debt levels should seek out reputable help and advice rather than opting for companies that claim to be able to write off debt.

Mr Latham explained: "Inappropriate advertising, I think, you can actually tell it very easily. It's the sort of advert you will see quite often where it says things like right up to 75 per cent, or 80 per cent, or 90 per cent of your debt written off.

"That's clearly inappropriate because what it's actually doing is leading people to believe that they shouldn't necessarily have to pay off as much as they could afford and effectively it's pre-determining the outcome and certainly we know from our conversations with the banks that that's an area that they're particularly upset about."

The number of insolvencies has risen by 55 per cent in 2006 and this figure could rise sharply as people struggle to cope with increased Christmas spending and borrowing levels over the coming months.

Related News : Debt
	Lessons in financial responsibility 'are important for young people'
	Payday loans 'can lead to significant financial difficulties'
	Brits 'becoming more focused on financial wellbeing'
	Serious debt issues emerging, says expert
	More women 'are facing debt problems'
	Debts 'down slightly in February'
	Brits 'should focus on reducing borrowings'
	Paying down debt is 'better value than saving'
	January a 'gloomy month' for indebted Brits
	Most expensive debts 'must be paid first'