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| Tories outline debt-busting plans | Tories outline debt-busting plans |
| (about 2 hours later) | |
| The Conservatives are to propose measures to tackle Britain's growing personal-debt crisis, including making changes to the home-credit market. | The Conservatives are to propose measures to tackle Britain's growing personal-debt crisis, including making changes to the home-credit market. |
| The plans, to be unveiled by shadow chancellor George Osborne, include a seven-day "cooling off" period for store cards. | The plans, to be unveiled by shadow chancellor George Osborne, include a seven-day "cooling off" period for store cards. |
| Speaking at a Tory-led summit, he will also propose lessons in financial management for those aged 11 to 18. | |
| Experts and leading figures from the debt sector will also be speaking. | Experts and leading figures from the debt sector will also be speaking. |
| Mr Osborne is expected to say that politicians, organisations and individuals must work together to fight the debt crisis. | |
| "It is increasingly clear Gordon Brown has not done enough. Insolvencies are up, bankruptcies are up, and the numbers of people struggling to cope are up," he will say. | "It is increasingly clear Gordon Brown has not done enough. Insolvencies are up, bankruptcies are up, and the numbers of people struggling to cope are up," he will say. |
| People need to be better informed about financial matters in order to avoid getting into unmanageable debt Teresa Perchard, Citizens Advice Bureau | People need to be better informed about financial matters in order to avoid getting into unmanageable debt Teresa Perchard, Citizens Advice Bureau |
| Under the proposals, home-credit companies would be required to share credit-history data on their customers. | Under the proposals, home-credit companies would be required to share credit-history data on their customers. |
| The Conservatives believe this would introduce more competition into a market, which is worth £3bn a year. | The Conservatives believe this would introduce more competition into a market, which is worth £3bn a year. |
| Mr Osborne will say the plan for store cards would "give consumers the opportunity to think about whether other forms of credit, such as an overdraft extension or conventional loan, might be more appropriate". | Mr Osborne will say the plan for store cards would "give consumers the opportunity to think about whether other forms of credit, such as an overdraft extension or conventional loan, might be more appropriate". |
| Lessons for school students on money management would help counter "low levels of financial literacy" among the young, he will say. | Lessons for school students on money management would help counter "low levels of financial literacy" among the young, he will say. |
| Unmanageable debt | Unmanageable debt |
| Mr Osborne is also due to call for tighter restrictions to be placed on Individual Voluntary Agreements (IVAs). | Mr Osborne is also due to call for tighter restrictions to be placed on Individual Voluntary Agreements (IVAs). |
| These are legal contracts between lenders and borrowers to pay off a reduced amount of a debt, but can leave the consumer with a poor credit rating. | These are legal contracts between lenders and borrowers to pay off a reduced amount of a debt, but can leave the consumer with a poor credit rating. |
| People were being "ill-advised" about these, Eric Leenders, the executive director of the British Bankers Association, told BBC Radio 4's Today programme. | |
| People have got to take responsibility for managing their own affairs British Chambers of Commerce director general David Frost | People have got to take responsibility for managing their own affairs British Chambers of Commerce director general David Frost |
| "Frankly, suggesting that 90% of your debt will be written off is simply misleading," he said. | |
| "Many people are concerned about the sort of advice people are being given." | |
| Mr Osborne will say that clearer explanations on credit-card statements are needed to show consumers the cost of the debt they are running up. | |
| Citizens Advice Bureau policy director Teresa Perchard said: "People need to be better informed about financial matters in order to avoid getting into unmanageable debt." | Citizens Advice Bureau policy director Teresa Perchard said: "People need to be better informed about financial matters in order to avoid getting into unmanageable debt." |
| But she added there was also a "strong responsibility on lenders to look thoroughly at a person's ability to pay before giving them credit". | But she added there was also a "strong responsibility on lenders to look thoroughly at a person's ability to pay before giving them credit". |
| British Chambers of Commerce director general David Frost said limits on store cards would not work. | British Chambers of Commerce director general David Frost said limits on store cards would not work. |
| "You don't have to take out a store card. There is clearly an issue here of personal responsibility," he told the Sunday Telegraph. | |
| "People have got to take responsibility for managing their own affairs." | "People have got to take responsibility for managing their own affairs." |