Many UK consumers are unclear about the details of a borrowing arrangement even as they agree to the deal, according to one expert.
James Ketchell, a spokesperson from the Consumer Credit Counselling Service (CCCS), suggests that for some credit consumers it is not obvious if a given arrangement is affordable for them or not.
With this in mind, Mr Ketchell makes clear the importance of financial education around the country if consumers are to avoid the threat of debt management disaster.
“There is a move towards more financial education for people because it’s not always obvious to people how to use credit and whether they are able to afford it,” he said.
“As prices have gone up and wages have stagnated and mortgages have gone up, people have to use a bit more common sense in their financial dealings,” he added.
Earlier this year, a report from the CCCS suggested that UK mortgage borrowers would be “on the rack” financially throughout 2007.