Loan borrowers should come clean to avoid financial heartache
UK loan and mortgage borrowers are advised to never falsify or exaggerate their financial positioning, when approaching a monetary provider.
According to one expert, bending the truth with regards to the state of personal financial health will in no way benefit any borrower in the long term. It is thought that some 15% of unsecured loan applicants will attempt to “talk up” their net disposable income, as a means to increase their chances of acceptance.
What happens, as you’d expect, is that borrowers who do manage to secure credit on the grounds that their levels of affordability are slightly more positive than the reality of their situation would dictate, is that they run an extremely high risk of amassing debts which they have limited to no hope of servicing.
In addition, the vast majority of individuals who choose to follow this path are identified as already struggling with the management of their repayments on other credit agreements, and are seeking additional credit to either count towards their repayments or consolidate the entirety of their debts. The former scenario is an extremely risky and often futile exercise in financial management.
Essentially, borrowers should always come clean to both their lender and more importantly themselves when applying for any kind of credit, as it will help to avoid further heartache and distress at a later date.
