People 'happy to use loans to manage finance'
Published On 17 May 2007
Many people do use financial tools like homeowner loans to effectively manage their debt, an industry expert has said.Julia Dallimore, the marketing director at Picture Financial, said that the vast majority of consumers were "comfortable with our levels of credit and borrowing", despite media reports to the contrary.
She explained that most people use things like homeowner loans effectively "to maintain our standard of living".
However, Ms Dallimore said that lenders and consumers still had to be responsible when thinking about these products.
"It is becoming increasingly apparent that people are finding it difficult to fully understand the terms of their financial agreements and the number of options that are available to them to better manage their money," she explained.
"It is vital that consumers are completely clear about what they are trying to achieve when taking on extra borrowing, whether it is trying to pay off their existing credit in a shorter timeframe or reducing their monthly repayments for greater financial freedom."
Equally, lenders should act in a "responsible" manner when considering loan applications.
"A reputable company will take the time to get a comprehensive picture of an individuals’ overall financial situation and ascertain what level of borrowing is suitable for their needs," Ms Dallimore explained.
Figures from Credit Action show that over six million people in the UK have used loans to consolidate debt in the last three years.
