Better personal loan lending advised for Northern borrowers

An increasing number of borrowers in the north of England developed debt management difficulties last year, it has been revealed.

According to figures released by the Insolvency Service, some 3,464 consumers in the north-east filed for insolvency over the course of 2006, compared to 2,572 in the previous year, reports the Northern Echo.

Meanwhile, the number of bankruptcies in North Yorkshire swelled from 630 during 2005 up to 894.

Treasury spokesperson for the Liberal Democrats Vince Cable told the publication the increase was as a result of "rising interest rates and irresponsible lending".

Director of Newcastle-based Debt Call, David Cairns, suggested that more checks should be carried out to ensure borrowers will be able to make repayments on secured personal loans, credit cards and mortgages.

Last week, Helen Saxon claimed that taking out a low rate loan can be a "positive step" for those wishing to manage their borrowing.

Interfinancial providing you with breaking personal loan news.