Best Loans News

The effects of the credit crunch and recent recession have left many individuals in the UK struggling to keep up with their loan repayments and other finances. However, new research has revealed that more than two thirds of these people have not discussed the matter with their bank.

The research, from Callcredit Information Group, has shown that borrowers who may be struggling with their personal loan debts are reluctant to share their problems with their regular bank and out of the 31 per cent who eventually do speak to their bank, this usually doesn’t happen until they have had at least two months of struggling to make their loan repayments.

The main reason given by individuals for loan and debt problems, has been a due to a sudden change in their personal financial circumstances, such as losing their job, or having their working hours reduced and it would appear from the survey, that those people with a young family are the most vulnerable group to fall into this trap.

Out of all the individuals who said they were struggling with their loans and other debts, only 8 per cent had sought advice from a debt organisation or their bank.

The longer a person leaves it before they ask for help with their loan debts, the worse the situation can become and this has been confirmed by the Citizens Advice Bureau, who have reported a significant increase in the number of serious debt problem cases.

Graham Lund of Callcredit said “What’s particularly concerning is the number of people who fail to make their bank aware of sudden changes in their financial situation and those who do get in touch aren’t always completely honest.”

“It’s imperative that lenders help customers identify any issues as soon as possible in order to support them in managing their finances.”