75% of consumers ‘not responsible’ for own debts

I read with some astonishment this morning that an astounding 75% of borrowers do not believe that they are responsible for their own levels of over-indebtedness. Three quarters of consumers do not feel responsible for making their own decisions regarding their finances, and feel that instead, lenders are to blame. With repossessions on the rise in the UK, particularly in the sub-prime market, and collective credit card borrowing at over £50 billion, over-indebtedness is clearly an issue that needs attention.

Without doubt, those involved in the lending industry are responsible for clearly informing borrowers about the debts they are taking on when applying for credit. There are many vulnerable consumers who rely solely on the guidance offered to them by lenders, and who may mistake a successful sale on the side of the seller as sound financial advice. However, to think that three-quarters consumers with debts believe themselves to fall into this group is, frankly, a little worrying.

Consumers must take responsibility for their own debts, and make an effort to understand that the consequences of repossession or a destroyed credit rating are far-reaching. Perhaps it is another sign of the Nanny State that has been cultivated within the UK, but it is unrealistic of borrowers to expect to be protected or bailed-out by others when their debts become unmanageable. Each person’s financial wellbeing is their own responsibility; borrowers must read all the paperwork that is given before signing on the dotted line and do their own independent research. Don’t rely on your bank manager’s judgement alone as to whether or not you should be taking on new debts; and if you are looking for advice, seek it from a qualified independent advisor.

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