It is important lending only takes place to those who are able to repay the debt, the Money Advice Trust has stated.
A spokesperson for the charity noted that lending decisions over the past few years “might have not been that responsible” due to the abundance of cheap credit, something which needs to change to prevent consumers getting into debt.
And the spokesperson also noted that many lenders are likely to address their lending criteria, both as a means to get through the current economic downturn and as a method of best practice.
“We need to make sure we are lending to people who can afford it,” she said, adding that changing lending criteria will reduce the number op people “getting into difficulty quite quickly”.
Such a move could be welcomed by Citizens Advice, which recently stated that a growing number of people are seeking debt help from the charity.
By Tom Musk