Chancellor Alistair Darling has warned banks to be more careful when it comes to lending money

Chancellor Alistair Darling has warned banks to be more careful when it comes to lending money.

He said: “in crude terms lenders need to know who they’re lending to, how much they’re lending and what the risk is.”
“Now, that’s elementary banking, one might think, but there are times when going back to good old-fashioned banking may not be a bad idea.”

He said “My starting point is that government can’t stand on the shoes of borrowers or lenders.”

“Borrowers need to ask themselves, ‘can I repay this?’ and lenders need to ask themselves ‘if it goes wrong, can I get it back?’. People do need to think long and hard about this.”

Chiltern’s Simon Duffy says “Many people think their way out of debt is to borrow more and consolidate their payments.”

“According to latest research 66 per cent of Brits who consolidate their debts actually accumulate further debts by using overdrafts, credit cards and additional loans.”

“If people are struggling to keep up with their finances it’s better to seek independent and impartial advice from trained professionals offering a range of solutions.”

Visit Chiltern.uk.com today for further information.