Job losses & irresponsible lending – debt problems - Loans - News - Moneyfacts

News

Job losses & irresponsible lending – debt problems

Job losses & irresponsible lending – debt problems

Category: Loans

Updated: 02/03/2009
First Published: 02/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Irresponsible lending has contributed to a situation that sees many Britons struggling with excessive debt, it has been suggested.

According to Citizens Advice, the past availability of secured and unsecured loans without sufficient background checks has led to problems.

A spokesperson for the body suggested that when added to job losses caused by the recession, this has created difficulty for many consumers.

"People have been able to take out loans, mortgages and credit cards - sometimes in circumstances where they have [been] persuaded to take them out - and the lender should have been checking much more carefully," she remarked.

Her comments follow the body's findings that the average person coming to it with debt problems last year owed almost £17,000.

The figure was two-thirds higher than that of 2001 and came as a result of factors including bills and secured loan arrears, with one in ten clients owing money on at least ten forms of finance.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…
 
Close