The low-income families need access to cheap credit

The government should offer more low-income consumers have access to cheap credit, has been proposed.

Speaking of this Article, Society Guardian, the former secretary of labor and pensions, David Blunkett and Kate Green, chief executive of Child Poverty Action Group called working with the private sector to help the three million Britons who do not work have access to traditional loan. Therefore, these borrowers would be forced toqualify for loans, leading to higher interest rates, the search for donor funds for the financing of social governance. Instead, the duo that politicians are willing to help with creditors, make offers affordable would work.

The paper Blunkett and Green said: "It could really change things - to promote independence and offer a variety of credit cards at home and, more importantly, lenders, financial assistance and appropriateThe orientation, opening a bank account and authorized to support a habit of saving and permits, rather than spending the money, you really have no interest payments are giant steps. It would be from the perspective of banks, participation in addressing the important social responsibility to the poorest populations, who currently have little - but also a new market for the security of government support. "

Ministers must now use the new coat and some realProgress in this expanding enormously important - for the poorest families, money that many of us take for granted, "he told the couple. He said that loans from the profits of £ 330 million per year, with credit - at home with greater interest is that almost 140 million euros.

Earlier this month, Helen Saxon Finance and Leasing Association (FLA) reports that the use of consumer credit is declining, because the effect of the baseRate increases by the Bank of England in the last 12 months have seen borrowers to put more of their monthly income on mortgage payments. But he said that although the English have the belt tight in recent months and less money on credit cards, personal loans and other forms of debt, loans in the past largely positive for consumers.

This suggests that if an act "rationally", the loans as a level ", theFLA-agent suggested that perhaps the British the chance to buy all the products that must be paid in any other way they could, or has the time. Ms Saxon added that, therefore, consumer credit in recent years the British economy will be increased. But he said that suppliers of credit in order to ensure that consumers make payments on their loans.

In the meantime, said James Falla, director of Thomas Charles, who, althoughThe loans are from autumn to consumers continues to face the legacy of an increasing acceptance of the loan in the past 20 years. " My concern is the debt that has already happened, "he suggested.