From shopping sprees to vacations: why loan offers are a source of concern

From shopping sprees to vacations: why loan offers are a source of concern
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Published September 16th, 2013 - 14:00 GMT via SyndiGate.info

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“In the last couple of years, we have seen banks and financial institutions become increasingly lenient with lending criteria and, as such, encourage borrowing and spending,” says Bailey.
“In the last couple of years, we have seen banks and financial institutions become increasingly lenient with lending criteria and, as such, encourage borrowing and spending,” says Bailey.
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The lending spree that had everyone thinking they could get everything they wanted has left many consumers trapped in mounting debt. When bad loans surged and liquidity started to decline, banks tightened credit standards.

Up to this day, a number of borrowers are still struggling to repay loans and credit card debt, but with the economy now showing signs of recovery, financial institutions seem to loosen up on lending terms.

Telemarketers are again cold calling customers to sell loans. Some banks dangle extravagant gifts, such as holiday tickets to a customer’s destination of choice, as an incentive for those who are eager to sign up for credit.

“In the current climate, banks and finance companies can be aggressive in trying to secure your business,” notes John Bailey, financial consultant at Acuma Independent Financial Advice.

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