Lenders have ‘encouraged borrowing’

Credit has been approved in the past for people who were unable to repay their debts, it has been stated.

A spokesperson for the Consumer Credit Counselling Service (CCCS), said that lenders have “encouraged” people to borrow, sometimes when their situations may not have been suitable.

Mortgages have been approved for homeowners who “seriously cannot afford to pay them back”, he remarked.

However, he noted that borrowers themselves need to take some of the responsibility for their situations, commenting: “If people have been spending ‘willy-nilly’ on credit cards, you can’t really argue it is the bank’s fault.”

The representative urged consumers to “take charge” of their circumstances and tackle debt management issues.

Meanwhile, research carried out by AXA has found that more UK adults have become aware of the significance of handling financial issues as a result of the credit crunch.

It showed that 80 per cent of Brits are now more likely to actively manage money matters.
By Jamie Price

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