Friday 29th of May 2009
Both borrowers and lenders are taking a more cautious approach in the current economic climate, it has been observed.
Adrian Coles, director general of the Building Societies Association, explained that people are trying to avoid debt worries, particularly due to concerns about potential future job losses.
He added that lenders are also reviewing their policies, as in the past loans have been approved in cases where they shouldn’t, with people now struggling to repay.
Anyone who finds themselves in such a position may benefit from seeking IVA advice online, particularly if they are worried that they could lose their job and therefore be unable to meet obligations in the future.
Recent Bank of England statistics indicated that growth rate of consumer credit continue to fall in March, with a year-on-year increase of 3.2 per cent.
And Mr Coles likened the situation with borrowing to a hangover, with consumers at the stage where they never want to drink again.
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- Could IVA answers change your attitude towards saving?
