Lenders insisting borrowers with bad debts to take secured loans to consolidate them. This could eventually lead to loss of their homes.
April 18, 2007 (Press Release) --
April 17'07, London: Borrowers struggling with personal loans and credit card debt are being pressured to take out consolidation loans that could result in the loss of their homes, a report by a financial website states.
Debt advice charities, including Citizens Advice and the Consumer Credit Counselling Service (CCCS) have expressed concern over the issue. According to them, the lenders are increasingly pushing customers to extend their mortgages, or take out second loans secured against their homes to pay off existing unsecured debt, even when they know the borrower cannot afford the new repayments.
The report further marks that the most of the borrowers have incurred bad debts due to default on unsecured loans and credit cards. So, the lenders are no more offering them unsecured debt consolidation loans. But even the secured loans aren't doing any good to the borrowers with multiple bad debts.
Says Peter Tutton, social policy officer specialising in credit and debt, “We've had cases where people have entered into secured loan agreements where [the payments] were not affordable from the outset. You wonder whether it's lenders and brokers not doing their jobs properly.” So, according to Tutton, secured loans help no way to consolidate unsecured loans.
Reports by many high street banks like Alliance and Leicester, Halifax and HBOS say that personal insolvencies increased at an alarming rate in the year 2006 and this has lead to stringent policies in terms of granting unsecured loams to the UK borrowers.
For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit http://www.loans-bazaar.co.uk
Debt advice charities, including Citizens Advice and the Consumer Credit Counselling Service (CCCS) have expressed concern over the issue. According to them, the lenders are increasingly pushing customers to extend their mortgages, or take out second loans secured against their homes to pay off existing unsecured debt, even when they know the borrower cannot afford the new repayments.
The report further marks that the most of the borrowers have incurred bad debts due to default on unsecured loans and credit cards. So, the lenders are no more offering them unsecured debt consolidation loans. But even the secured loans aren't doing any good to the borrowers with multiple bad debts.
Says Peter Tutton, social policy officer specialising in credit and debt, “We've had cases where people have entered into secured loan agreements where [the payments] were not affordable from the outset. You wonder whether it's lenders and brokers not doing their jobs properly.” So, according to Tutton, secured loans help no way to consolidate unsecured loans.
Reports by many high street banks like Alliance and Leicester, Halifax and HBOS say that personal insolvencies increased at an alarming rate in the year 2006 and this has lead to stringent policies in terms of granting unsecured loams to the UK borrowers.
For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit http://www.loans-bazaar.co.uk
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