Loans are a “great enabler”, claims lending association

Edward Simpson, head of public affairs for the association, claims that it is only a minority of consumers who find debt management difficult and experience problems as a result.

“The borrower’s got to make sure that they don’t overextend themselves and that they’re in a position to repay outgoings,” Mr Simpson asserts.

“Used sensibly, credit is a great enabler because it allows you to manage the peaks and troughs of your spending.”

However, a spokesperson for the National Debtline organisation recently criticised money lenders in the UK for allowing consumers to borrow money under terms and conditions they do not understand.

In related news, statistics from the money education charity Credit Action released today revealed that £36 million in unsecured loans is taken out each day in the UK.