Lenders 'should compromise on some consumer debts'

Lenders should be more sympathetic when it comes to managing consumer debt, it has been claimed.

David Rodgers, managing director of the Debt Advice Foundation, said solutions which aim to return some of the debt to the lender - and provide financial rehabilitation for the borrower - "should come much higher up the agenda" as people struggle to pay back what they owe.

He suggested that as the number of people seeking debt advice increases, lenders may become increasingly open to options which require their cooperation.

They should come to some form of compromise in a bid to minimise losses through bad debt, he said.

Mr Rodgers added: "The lenders will work much more closely with charities like ourselves when it comes to sympathetically managing those customers who simply cannot afford their repayments."

In related news, PricewaterhouseCoopers has reported that UK households will spend an average of £5,000 this year simply servicing loans.

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2009-11-11 14:18:52 © Moneyextra.com