Monday 23rd of March 2009
Changes to the way credit is offered could lead to people facing up to debt management problems sooner, it has been suggested.
The Money Advice Trust noted that government regulations to prevent credit card companies from increasing limits without a request being made by the customer is likely to encourage more responsible behaviour.
And spokesperson for the charity Beccy Boden Wilks noted that "credit is not a bad thing", as long as it is used correctly.
Being able to continue to build up the amount a consumer owes is likely to lead to debt management problems, she explained, adding that the new rules "could … mean people will have to confront the problem earlier".
Announcing the changes last week, prime minister Gordon Brown also highlighted the introduction of debt relief orders.
From next month, these will allow people who are on low incomes and have limited debts to write off what they owe.
- Debt consolidation loans falling, figures show
- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- Interest rates rise could increase financial pressure on homeowners
