Julia Dallimore, marketing director at Picture Financial, claims that there are many people across the country who do not take the necessary steps to familiarise themselves with the details of their credit arrangements and run the risk of facing debt management difficulties.
As the number of consumers entering into Individual Voluntary Arrangements (IVAs) in the UK continues to rise, the Ms Dallimore suggests that keeping an close eye on personal borrowing is crucial in avoiding financial problems.
“It is becoming increasingly apparent that people are finding it difficult to fully understand the terms of their financial agreements and the number of options that are available to them to better manage their money,” she said.
“Any lender should also ensure that its customer fully understands the commitment they are taking on and that they are comfortable with the level of repayment each month,” she added.
Recent figures from the Insolvency Service revealed that the number of IVA entered into in the UK was 23 per cent during the first quarter of this year, in comparison with the same period of 2006.