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Young face growing mortgage debt burden

Young first-time buyers are increasing their overall mortgage debt in order to tackle short-term financial pressures. The average mortgage term is lengthening from the traditional 25 years, according to figures from broker L&C Mortgages. Its figures show the proportion of new buyers taking out 31 to 35-year mortgages has doubled in 10 years. That means lower monthly repayments, but a bigger overall bill owing to the extra interest incurred. The extra total cost can be tens of thousands of pounds. Where can I afford to live? Your results – Amount…

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Labour pledges law to cut credit card debt

Legislation limiting the amount of interest that can be charged on credit card debts is being promised by the Labour Party. Under the changes, nobody would pay more in interest than they had originally borrowed. Shadow chancellor John McDonnell says more than three million people are “trapped” by credit card debt. He will unveil the planned change in the law in a speech at Labour’s conference in Brighton. Labour said the changes would work in a similar way to measures on payday loans, which came into force in 2015. The…

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A Birkin Bag in the Box Is Worth a Lifetime of Debt

After she lost her job, Angela Rivers found herself in need of some quick cash. Instead of heading to her bank, she delved into her Brooklyn closet. An avid shoe and handbag collector, she took out her cherished chocolate brown Birkin and went across the river to Manhattan, where she had an appointment in the chaotic diamond district at a pawnshop called New York Loan Company. On West 47th Street, New York Loan Company visitors edge past fast-talking gold hawkers, jewelry hustlers, murmurs of Yiddish slang and ever-present police to…

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Jeremy Corbyn: Student debt write-off not a commitment

Media playback is unsupported on your device Jeremy Corbyn has insisted he did not promise to write off all student debt while appealing to young voters during the general election. During the campaign, the Labour leader said he would “deal with” the issue of graduates burdened with debt since tuition fees rose to £9,000. He told the BBC he had never promised to abolish all debt as Labour “were unaware of the size of it at the time”. Tory MPs have accused him of misleading students and urged him to…

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Labour 'aim' to wipe £100bn student debt – Angela Rayner

Labour’s “ambition” is to write off all student debt, which would cost £100bn, shadow education secretary Angela Rayner has said. The Labour MP said it was a “huge amount” and the party would not commit to doing it “unless we can afford to”. The Conservatives said it was a “shambolic” proposal, which Labour had no idea how to fund and would lead to higher taxes. Labour has pledged to scrap university tuition fees if it wins power. But leader Jeremy Corbyn went further in an interview with the NME during…

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Student debt rising to more than £50,000, says IFS

Students in England are going to graduate with average debts of £50,800, after interest rates are raised on student loans to 6.1%, according to the Institute for Fiscal Studies. Those from the poorest backgrounds, with more loans available to support them, will graduate with debts of over £57,000 says the think tank. Interest charges are levied as soon as courses begin and the IFS says students on average will have accrued £5,800 in interest charges by the time they have graduated from university. Report author Chris Belfield describes the interest…

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