Credit Providers Should Offer More Assistance to Consumers, Study Shows

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2nd September 2014 10:44 - Financial Services

Three in four (75%) Britons believe credit providers should offer more assistance to their customers who are going through financial difficulty, research has shown.

Although the survey’s participants, as a whole, did not think owed money should be completely written off, just over one quarter (27%) did agree that it was unfair to expect customers to repay debts if they could no longer afford them.

Furthermore, around one quarter (76%) of Brits in debt said they were comfortable with their repayments, with the remaining 24% less at ease - one fifth (19%) said they were “fairly uncomfortable” and 5% claimed to be “very uncomfortable.”

According to Mintel’s study, seven in 10 (70%) consumers in Britain owe money to at least one kind of credit provider, with almost two thirds (64%) potentially at risk of struggling financially or even missing payments if they increased - this includes the 24% who stated they were already uncomfortable with their repayments, and two fifths (40%) who said they are currently comfortable, but could not afford for their installments to increase.

Furthermore, more than two fifths (44%) of the survey’s respondents felt consumers should have some sort of insurance to cover their debt to protect them against any risks should they be unable to keep up with their installments. However, previous research conducted by Mintel has shown that 2% actually took out such insurance to cover their loan in the event of sickness, unemployment or an accident.

In the event of monetary distress, participants placed slightly more importance on keeping up with households bills (37%) than debt repayments (33%). Seven in 10 (71%) said they would make considerable changes to their lifestyle to avoid damaging their credit rating.

And, finally, 5% of the study’s participants admitted to owing money to a friend or family member, however, the majority (48%) said they felt more comfortable lending money from formal lenders, opposed to friends or family (39%).

 

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