19 May 2006
The Citizens Advice Bureau (CAB) is encouraging loan companies to simplify the details and terms of loans.
It said the change would help borrowers from taking out unmanageable levels of debts.
"The credit market has expanded greatly and become very complex," said Moira Haynes from the bureau.
"Lenders should make it clear to customers what they are committing to. It can be hard to understand the details and the small print," she added.
Greater clarity and assistance was needed in order to stop people from getting into unnecessary debt, she said, adding that loans companies should help customers to understand what they are taking on.
An MP has urged anyone struggling to deal with their debts to seek assistance from an organisation like the CAB as soon as possible.
Barbara Keeley said that anyone should take this kind of advice before taking out another loan secured on their property.
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