UK POLITICS: Labour Party Comes to the Rescue Unveiling Plans to Help Families Fight Debt Crisis

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By Politicoscope September 25, 2017 09:25

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Labour Party shadow chancellor, John McDonnell: “Household debt in this country stands at the record level of over £1.8trn.

“We have seen with pay day loans; some companies were making massive profits from people’s financial difficulties. Under pressure, the government has been forced to cap interest payments on payday loans.

“But more than 3 million credit card holders are trapped by their debt. They’ve paid more in interest charges and fees than their original borrowing.”

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UK POLITICS: Labour Party Comes to the Rescue Unveiling Plans to Help Families Fight Debt Crisis

Labour is unveiling a pledge at its conference to help families trapped by massive credit card debts by introducing a cap on interest payments. The shadow chancellor, John McDonnell, will announce plans to guarantee that no-one pays more in interest payments than their original loan.

Announcing his interest rate cap, Mr McDonnell will say: “Household debt in this country stands at the record level of over £1.8trn.

“We have seen with pay day loans; some companies were making massive profits from people’s financial difficulties.

“Under pressure, the government has been forced to cap interest payments on payday loans.

“But more than 3 million credit card holders are trapped by their debt. They’ve paid more in interest charges and fees than their original borrowing.”

Some credit card repayment rates are now so high that customers pay around £2.50 in interest and charges for every £1 they borrow.

:: The average amount of credit card debt outstanding for accounts in persistent debt is £3,464

:: The total amount outstanding on these accounts is about £14bn

:: Consumer credit debt, which includes credit cards, personal loans and overdrafts, has passed £200bn for the first time since 2008
Commenting on Labour’s plans, Chief Secretary to the Treasury Liz Truss said: “The best way to help people with their personal finances is with our balanced approach to the economy, which is creating more well paid jobs and cutting taxes for working people.

“Labour take it too far and would damage our economy, meaning fewer jobs, higher taxes and more debt.

“Working people would pay the price, just like they did last time.”

UK Finance chief executive Stephen Jones said: “The FCA’s extensive credit card market study looked very closely at the issue of persistent debt.

“It considered whether a cap on interest charges should be introduced, but concluded that there were preferable alternatives which the industry is supportive of and will implement when the current consultation is concluded later this year.”

But Mr McDonnell’s speech to delegates on the economy is not the only big issue on the Labour agenda for day two of its conference in Brighton.

Party leader Jeremy Corbyn is facing protests from pro-Remain Labour MPs who are furious that he has dodged a meaningful vote on Brexit policy, after it was blocked by conference delegates.

The decision came after the left-wing campaign group Momentum emailed supporters urging them not to back Brexit in a ballot of motions, calling it a “potentially time-consuming cul-de-sac”.

The Conservatives also attacked Labour’s decision not to hold a decisive vote on party policy on Brexit.

Eurosceptic MP Suella Fernandes said: “Labour are ducking away from debating Brexit, the biggest issue facing our country, because they are too divided on the issue and have no plan.

And Mr Corbyn’s critics in his own party are accusing the Labour leader and his supporters of a stitch-up and saying: “So much for his claim to make the conference more democratic.”

– Sky


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Politicoscope
By Politicoscope September 25, 2017 09:25

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Since You’re Here, We Would Like to ask You for Help

There are more readers worldwide reading the Politicoscope daily news content than ever before. Unlike many other news media organisations that charge their readers subscription fees for the same daily news content and features we offer you for free, we do not charge all our readers to pay any fee. We depend on online advertising to generate the revenues to fund all these great news content and exclusive features provided to you for free. Currently, advertising revenues are quickly falling which is affecting our ability to offer you free online news content.
If everyone who reads our news content, likes it and helps to support it, we can have future guarantee to offer you with the best daily news content and other amazing features, all for free.
"I visit Politicoscope everyday to read my daily news in world politics. I'm glad it's all for free. On my part, I'm happy to donate monthly so as to continue enjoying these free content because it's actually a small amount from me compared to paid subscriptions by other news organisations. I want to help Politicoscope grow more so that I and other readers can continue to have access to free and exclusive daily online news." - Denise H., from LA, USA.
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