With a rapidly expanding credit market, lenders are being urged to clearly explain the terms and conditions of a loan to avoid the borrower slipping into further debt.
Moira Haynes from the Citizen's Advice Bureau says that often the finer details of personal loans can prove to be complicated and misunderstandings arising from taking out the loan can be detrimental to the borrowers' finances.
"It can be difficult to understand the exact details of what they are taking on. It can be hard to understand the details and the small print," she commented.
She insists that to avoid financial hardship on the part of the borrower and to ensure the lender doesn't waste time and money chasing payments, both parties need to be clear on all the terms and conditions involved.
"Lenders should make it clear to customers what they are committing to," she concluded.





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