Borrowers Should Be Better Educated With Regard To Their Loans
Levels of personal debt through personal loans and credit cards are at record levels in the UK at present and are still rising. Whilst many people are able to manage their loans and other debts, a growing number of individuals are finding it difficult to keep up with their monthly loan repayments and not manage their debts.
This is leading to a significant increase in the level of loan arrears and defaults amongst borrowers and the recent recession and tighter lending criteria from banks and building societies certainly hasn’t helped the situation.
One reason why the situation with people falling behind in their loan repayments and finding themselves in serious financial trouble, is due to a lack of understanding about how their loans work and personal financial management in general.
The Consumer Credit Counselling Service (CCCS), one of the UK’s leading debt charities, has now said that people need to be better educated with regard to personal loans and other debt matters, in order for them to be able to manage their loans and other debts effectively and even avoid getting into debt in the first place.
With this in mind, the CCCS has launched a new service aimed at promoting better financial education for individuals with personal loans, or considering taking out a new loan. The free programme is called “Money Matter” and is available through the charity’s website.
The system offers general advice on loans and other debts, as well as specific advice tailored to an individual’s particular situation and is available on line, or in the form of a booklet.
A spokesperson for the CCCS said “Managing your money effectively is important for both short and long term happiness. During a recession, nobody can afford to ignore good money management which could even stave off a developing debt problem.”
