Belts tightened as low-cost credit dries up
Article Category: Debt Consolidation Help and Advice
Borrowers are having to increasingly look for higher cost credit in their search for a loan.
That is the view of debt charity Credit Action, which says that the tightening of lending criteria, due to financial turbulence in the money markets, has made it more difficult for people who may be classed as a higher risk, to obtain standard high street credit cards.
Chris Tapp, from the charity, said that people were now generally "reeling in" their spending.
He added: "People are looking to tighten their belts and try to save a bit more, but also, credit is less widely available so what we will see is a certain amount of growth in higher cost credit.
"It’s likely to be a year in which, as the economy more generally slows down, the rate of borrowing will, to an extent, slow down with it."
According to Debt Help UK, 90 per cent of credit card companies fail to check the income of applicants.
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