London: Scrooge or saviour?

Duncan Williamson
Politics Show London

It may only be the middle of November but the Christmas season has been underway for weeks.

£900m may be spent leading up to Christmas 2003

The shops are festooned with decorations and the shelves are piled high.

Not everyone is getting into the Christmas spirit however.

Ealing North MP Stephen Pound has put down an early day motion calling for a ban on Christmas music in shops until December.

He says there is serious reason behind his Scrooge like actions and that is debt.

According to the Financial Services Authority, one in five families has a credit card with a debt of more than £2,000.

The British Bankers Association says that lending on credit cards, overdrafts and store cards increased £900m in September.

Borrowers at risk

With interest rates starting to go back up many experts are worried that people who have large loans will find themselves in seriously deep water.

The problem is that borrowing is increasing but incomes are not.

What should be done to prevent people getting into unmanageable debt in the first place?

In 2000, the government set up a task force on over indebtedness.

It reports to the Department of Trade and Industry and has looked at issues such as tackling loan sharks.

Review of credit

The DTI has instituted the Consumer Credit Act Review, which is looking to regulate credit lending laws.

The government has also appointed a Commons Treasury select committee of MPs to investigate credit card charges.

But the Citizens Advice Bureau say that none of these things are radical enough to stop the problem growing.

A problem that will impact on many people when they come to count the cost of their Christmas spending sprees!

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