Personal loan providers and those signing up for loans should share responsibility for debt concerns, according to a national charity for people experiencing adverse credit problems.
The majority of clients assisted by National Debtline have adverse credit problems as a result of changes in their circumstances, a spokesperson for the charity says, citing examples like illness or divorce.
Last year, personal debt in the UK topped £1 trillion, with PriceWaterhouseCoopers reporting that unsecured personal loans accounted for £180 billion of this.
Mark Maguire, a spokesperson for Egg bank, says people who are planning to take out a personal loan should make sure they know what they are getting themselves into.
He points out that surveys have revealed that consumer awareness of financial terms is "poor".
Egg offers online tools to help people understand their financial situation better, Mr Maguire says, adding that they are "useful" and "easy to understand".
"This way they can get a clear picture of their finances and how much is reasonable for them to borrow," he concludes.
Debt responsibility to be shared, says charity
Debt responsibility to be shared, says charity
Thu, 16 Feb 2006
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