Borrowers should ask banks for help if struggling
January 7, 2008
Over the past couple of years banks in the UK have been in the financial headlines many times, usually linked with bad news for consumers, such as bank charges or breaches of security. However, despite what seems to be an ever widening gap between banks and banking customers consumers are being urged to get in touch with their bank for advice and assistance if they are struggling with repayments on their borrowing rather than just trying to ignore the problem.
At this time of year many people will be taking stock of their finances, particularly given the level of spending that many people may have engaged in over the festive season. One industry official, Angela Knight from the British Banker’s Association, has predicted that there will be many people facing difficulties with repayments on their borrowing, and she has urged consumers that do face financial difficulties in the coming year to make sure they contact their bank in order to get advice and try to find a solution.
Angela Knight also stated: “Banks are fully signed up to the enforceable responsible lending practices in the Banking Code. Yes, they want to lend money but they want to do it the right way by lending to people who are going to be able to make the repayments. So, if your bank turns down your request for a loan then think hard before you go and borrow elsewhere.”
Consumers are advised to also review their outgoings and to try and cut back on spending wherever possible so that they can reduce their outgoings to help better handle debt repayments. In the meantime the Citizen’s Advice Bureau and various debt charities are preparing themselves for an increase in the level of debt related enquiries.
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