That is actually a really good idea. And lenders could market themselves on that basis - subscribers to a 'Code of responsible Lending' and all its inherent procedures.....

Yeah worried - doing a more in rigerous analysis of income/expenditure should be undertaken is a great idea.  It would have to be externally enforced however, as it would have to apply to all and not just left to lenders whether to implement.

In my time, I've had 3 personal loans, a car loan, 3 credit cards, 2 store cards, a contract phone, and an overdraft. I can't ever remember having to show proof of income. I think it should be necesary to provide this info, at least people who truly can't afford to pay anything back wouldn't then get lent more. Fair enough they may look at my bank account, but I take money out and end up paying it back in all the time, which would to an outsider inflate the true figures paid in. Lenders look at affordability and income mulitples for mortgages, why not to an extent for unsecured lending? That would at least help those reckless spenders by taking away their options, if they can't curb their urge for more credit on their own.

good question beus.  Education as previously discussed is an essential.  Other than that I dont believe we can do anything, except make sure the perils are often and forceably advertised.

So what do you think can be done to safeguard people from getting too much money and getting out of control?

But I still end up paying his commission in higher rates etc.

Not if the cost of it is factored into his commission.......

Call me cynical, but I just see a compulsory discussion with an IFA as a way for the IFA to make money out of me.

beausian:

So perhaps it should be a requirement that everyone, when applying for any sort of credt, should see an IFA with a full budget income vs expenditure as a part of the credit scoring?  I certainly would do that if/when i apply for any form of credit just to make sure I can afford it and to have someone official look at what I want to do and maybe have other ideas as to what I should try next.

That's a good idea. Credit scoring alone doesn't often give a true picture of circumstance.

It makes sense to those who are financially aware and more importantly, those who it wouldn't make sense to, those who aren't financially aware (me at 18), need it.

JJ

So perhaps it should be a requirement that everyone, when applying for any sort of credt, should see an IFA with a full budget income vs expenditure as a part of the credit scoring?  I certainly would do that if/when i apply for any form of credit just to make sure I can afford it and to have someone official look at what I want to do and maybe have other ideas as to what I should try next.

Glad to hear the kitten is settling -when is the timeline on the next one?

beausian

I understand fully about banks and how they work and fully accept responsibilty for my actions as a youngster accepting credit (they didn't have my arm up my back). However, I can't help but feel a little aggrieved when I'm much more sensible and in a financially better, more stable position than when I was 18 and struggle for things I would've got without asking back then.

The way of the world I suppose, I just wish as an 18 year old that I had a little more foresight to realise that "responsible lending" doesn't equate to responsible borrowinig.

JJ

 

She slept on my bed last night and I worried about squashing her!! Prince is her daddy and the other who are a bit hostile - Duchess much more so than Jaspar, who just runs away when he sees her!! She purrs obligingly down the phone for the kids, and they cannot wait to see her - my five-year-old son is terrified she will grow up before he gets home and keeps asking me if she is still small!!

Yes, I agree we can only reach limited people, but how many more people can they then reach? What's posted here may reach millions of people, virally, by word of mouth and discussion....

I agree that communities like this one do help, but it can only help people who are here in the first place, and that tends to be people who are aware (or becoming aware) about affordibility, and (mostly) are willing to listen.  It is those people who are out spending or gaining large amounts of credit who are car crashes waiting to happen.  Those are the people who need the greatest amount of help.

beausian

(ps I know it's not the right thread but how is the new kitten settling!)

I'm going to disagree here. I think a lot of the questions asked here are very genuine and that we can - with well thought out and careful posts - alter a person's way of thinking, teach them, and assist them in making the right decision. Sure, there have been posters who, no matter how persuasive we've been, don't want to hear what is being said, but, by and large? I think we do a good job.

I think communities like this count for something.

People who are on websites like this are already aware to some extent about affordibility.  People in the know can talk till they are blue in the face but it will only help those who will listen and want to listen.

Speeding and drink driving education is similar - there are programs in schools where VERY realistic car crashes are shown to those who have just got their license.  It doesn't stop young people and new drivers killing themselves and each other with speed, drink driving, inexperienced driving etc.

beausian