Money lenders in the UK ought to give their customers some “financial breathing space” when their debt management problems are getting out of control, it has been suggested.
Picture Financial insists that lenders can help their customers to maintain a healthy level of borrowing and to meet their repayment demands by allowing a certain amount of room so consumers can arrange their finances effectively.
“Responsible lenders should be ensuring that people are borrowing no more than they can afford to repay as well as allowing a certain amount of ‘financial breathing space’ should the unexpected happen,” said Julia Dallimore, marketing director at Picture Financial.
However, Ms Dallimore suggests that credit consumers have come under more financial pressure in recent months in the wake of a series of increases in the base rate of interest.
“It is important for people to ensure that they review their credit arrangements and if necessary restructure their borrowing to allow themselves greater financial freedom each month,” she said.
The Bank of England has raised the base rate of interest five times since August of last year and the cost of borrowing is currently at a six-year high of 5.75 per cent.