Tuesday 5th of May 2009
It is likely to take time before banks begin significantly increasing the amount of credit available to consumers, an expert has stated.
David Kuo, head of personal finance at fool.co.uk, noted that the Bank of England has been taking steps to encourage lending by making more money available to institutions.
But he added that this has not yet been passed on to consumers, as the Bank’s figures have shown that the increase in lending was lower in March than in February.
Those who are unable to consolidate their debts because of a difficulty in obtaining finance may wish to consider non-borrowing solutions such as IVA help to regain control of their situation.
It could become increasingly important to address such options, as Mr Kuo stated that it may be a while before an improvement takes place.
"I don’t think we’re going to be seeing any kind of credit-led recovery until the banks are absolutely certain that they have enough cash for themselves," he said.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA questions could offer support to struggling self-employed
