Struggling loan borrowers should avoid the Ostrich approach
Postponing loan and credit card repayments due to tightened budgets after a heavy Christmas spending binge, should be avoided at all costs.
According to a recent report, almost 20% of adults choose to delay payments for ancillary credit such as personal loans and credit cards during January, as a means to reconcile their finances. However, one expert has warned that such actions could almost certainly result in future credit attainment difficulties.
Very few consumers appear to understand just how serious missing loan repayments can actually be, with a recent survey revealing that as few as 10% of borrowers realise that a default or CCJ could stick with them for up to 3 years, after it is issued. The resulting effect of which is that lenders will either charge a higher rate of interest on a new credit agreement, as a means to balance the speculated risk, or in the most severe circumstances, refuse credit altogether.
Commenting on the findings, one expert suggested that rather than bury their heads in the sand, consumers should seek professional help and advice with their financial commitments. There are literally thousands upon thousands of UK residents who struggle to some degree at the start of the New Year, and for that reason it is important to remember that you are not on your own. In the vast majority of cases, there are often simple, practical steps, which can be taken, in order to the get the individual back onto the right path.
