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Weekly round-up

02/04/2010

Britons are back borrowing it's been claimed this week.

Research from unbiased.co.uk reveals that for every pound saved at the end of last year, another 62p was borrowed.

This has sparked fears that this could lead to financial problems or a debt spiral for borrowers in the future.

The news comes in the same week as The British Bankers Association (BBA) revealed that people in Britain owe high street banks a total of £52bn in personal loans.

The BBA say that the total number of new loans taken out in February was £1.3bn- £100m more than the previous month.

However, lenders must now decide if a customer can afford to repay a loan before granting it under new guidelines issued by the Office of Fair Trading (OFT).

Lenders must also monitor the borrower's repayment record during the course of a credit agreement, offering assistance if they experience difficulty and treat customers fairly if they have debt problems.

Other measures include not misleading customers with adverts and explaining key features so borrowers can make an informed choice.

Better lending values could mean even less people with debt problems ending up with a county court judgment.

The number of CCJ's issued against individuals fell sharply in 2009, with a 14 per cent drop since 2008.

And finally, it's been revealed this week that Brits with financial difficulties could knock nearly £350 off their energy bills, simply by changing providers, it couldn't be easier – just visit www.energyswitching.co.uk.

This couldn't come at a better time for consumers, after it was revealed that personal debt caused by energy bills had risen 16 per cent over the past two years.
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