Z Cherry Blog

From Bath University research uncovers in UK, secured loans, bad credit and a loan mentality

March 4th, 2008

Nine out of ten people in the UK think that banks and other institutions make it all too easy to get a loan.With or without so-called bad credit, these lenders are pushing money towards us and it has never been easier to get a loan. At least that’s what people think.And in fact, it is being argued that the government itself is encouraging people to like debt and live with as ‘normal’ with the student loan scheme that sees almost every student enrolled in a post-high school course borrowing the fees. This according to a university professor at Bath, Alan Lewis, who has released ‘Money in the Contemporary Family’.This weighty report produces evidence to show the government student lending industry is reinforcing the general perception that loans are easy, even if you have a bad credit or savings record. His research showed that in the UK, secured loans, bad credit and heavy mortgages are a fact of life.So Allan Lewis is suggesting, and indeed many of the people he interviewed for his report talked about this, that children be taught about credit and credit cards while at school, so they would not have to walk blind into debt the day after they leave the protection of the free education at British high schools.

Entry Filed under: Business