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Consumers in debt need to re-evaluate lifestyles
06/05/2008 09:57:00
Consumers who are rejected for financial products and services due to debt need to re-evaluate their lifestyles, one financial expert has claimed.
Fool.co.uk said that consumers were often refused credit due to having excessive amounts of debt compared to their income or having previously defaulted on payments.
David Kuo, head of personal finance at Fool.co.uk, said that consumers need to find ways of repaying the debt they have so they can become viable propositions to lenders.
"In general what you really need to do is look at your credit application and say: 'Would I lend money to myself?' and if the answer is no then I doubt anybody else would lend you money either," he stated.
MoneyExpert.com reported in April 2008 that 18,000 credit card applications were being refused every day.
The research found that one in 14 people (an estimated seven per cent of the population) had been refused a credit card in the last six months – a total of 3.24 million applications.
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