Credit 'has been too easy to access'

It is no wonder more people are seeking help with debt, as credit has been too readily available in the past, it has been claimed.

Insolvency practitioner Nick O'Reilly, a director at Vantis business recovery, said that too often borrowing is seen as being "payment for today", with no consideration given as to how the loan will be paid back.

This is "completely the wrong way to borrow money", he claimed, and any further restrictions placed on access to credit are "long overdue".

Mr O'Reilly said: "The most worrying part for me, is that store cards and shop credit are all being sold by retail assistants who are not necessarily the best people to be selling credit products."

Whether people have a small or large amount of debt, they require an income which is steady and able to repay an element of it, he added.

People with money concerns should seek free debt advice as quickly as possible, according to Jessica Bown of Talk About Debt.

Moneyextra.com recommends you take independent financial advice before acting on any article

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2009-11-10 12:07:28 © Moneyextra.com