‘About half’ of loan applications declined
Article Category: Debt Consolidation Help and Advice
"About half" of all personal loan applications are being turned down as a result of the credit crunch, according to a money education charity.
Credit Action says the situation has resulted in a tightening of lending criteria as lenders become more risk averse.
They also warn that more applications for credit cards are likely to be turned down by companies.
In addition, they are increasingly liable to reduce borrowing limits, as Barclaycard did recently.
Chris Tapp, director of Credit Action says that with Christmas the temptation is to overspend and be left with a "financial hangover".
"We recognise that budgets are not exciting things for people to do but people do need to spend a little bit of time working out what their income is, working out what their expenditure is and how they’re going to make those two match up so that they have something to put into a savings account," he said.
Mr Tapp concluded by saying that although he thought there would not be a recession next year there would definitely be harder times ahead for some people financially and they needed to "think about how to prepare for that".
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