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Joanna Elson OBE, Chief Executive of the Money Advice Trust comments on the August 2010 Lending to Individuals figures released by the Bank of England
Commenting on the August 2010 Lending to Individuals figures released by the Bank of England, Joanna Elson OBE, Chief Executive of the Money Advice Trust, said:
“Whilst we can be pleased that the August figures demonstrate that consumers are, on the whole, choosing to reduce their unsecured debts, we have to be aware that the figures involved amount to little more than a drop in the ocean of unsecured credit. Unsecured consumer credit fell by £0.1 billion in August – this accounts for just 0.05 per cent of total outstanding unsecured consumer credit.
“It is now around three years since the start of the credit crunch. The Bank of England’s figures from August 2007 show that despite a three year period including banking collapses, deep recession and tight controls on credit lending, consumers have actually increased their unsecured debts by £1.8 billion.
“Credit can be an important tool to smooth the economic peaks and troughs of life, but our experience at National Debtline, which is run by the Money Advice Trust, also shows that people in unmanageable debt are hampered in many areas of their lives, and incur significant costs to society.
“It is important that people struggling to repay their debts are given every chance to do so. Yesterday’s OFT report demonstrated very clearly that fee-charging debt management companies are misleading people in debt and providing poor service. By ensuring free, independent advice is available to consumers suffering the turmoil of unmanageable debt, we can begin to make serious inroads into the UK’s personal debt mountain.”
People who do have concerns about their debt should call the National Debtline on 0808 808 4000, or alternatively contact one of the Money Advice Trust’s partners, such as Citizens Advice or the Consumer Credit Counselling Service (CCCS).
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Commenting on the August 2010 Lending to Individuals figures released by the Bank of England, Joanna Elson OBE, Chief Executive of the Money Advice Trust, said:
“Whilst we can be pleased that the August figures demonstrate that consumers are, on the whole, choosing to reduce their unsecured debts, we have to be aware that the figures involved amount to little more than a drop in the ocean of unsecured credit. Unsecured consumer credit fell by £0.1 billion in August – this accounts for just 0.05 per cent of total outstanding unsecured consumer credit.
“It is now around three years since the start of the credit crunch. The Bank of England’s figures from August 2007 show that despite a three year period including banking collapses, deep recession and tight controls on credit lending, consumers have actually increased their unsecured debts by £1.8 billion.
“Credit can be an important tool to smooth the economic peaks and troughs of life, but our experience at National Debtline, which is run by the Money Advice Trust, also shows that people in unmanageable debt are hampered in many areas of their lives, and incur significant costs to society.
“It is important that people struggling to repay their debts are given every chance to do so. Yesterday’s OFT report demonstrated very clearly that fee-charging debt management companies are misleading people in debt and providing poor service. By ensuring free, independent advice is available to consumers suffering the turmoil of unmanageable debt, we can begin to make serious inroads into the UK’s personal debt mountain.”
People who do have concerns about their debt should call the National Debtline on 0808 808 4000, or alternatively contact one of the Money Advice Trust’s partners, such as Citizens Advice or the Consumer Credit Counselling Service (CCCS).
More...
