Salford, Greater Manchester -- (ReleaseWire) -- 04/01/2010 -- After official figures from the Bank of England showed another rise in net lending to individuals, financial solutions company Think Money said that while the figures spelt good news for borrowers and the loans industry as a whole, people should remain cautious about borrowing money.
In its lending report for February, the Bank of England said there was a £2.1bn net rise in lending (i.e. £2.1bn more borrowed than paid back) that month, compared with a £1.9bn net rise in the previous month.
February's total included a £1.6bn net rise in secured lending and a £0.5bn rise in consumer credit, such as credit cards and personal loans.
It was the fourth consecutive month in which total net lending to individuals had risen or stayed the same.
A debt expert at Think Money commented:
"Increases in levels of lending are good news for the economy in general, and this should contribute to the continuing economic recovery. Furthermore, it's good news for many of the would-be borrowers who have been unable to get credit in recent months.
"But as ever, we remind borrowers that borrowing money is only a good idea if they are sure they can repay it. The economy is still not back where it was before the recession, and many people will keep on struggling financially in the future.
"It's a matter of why people are borrowing money. If it's for something like home improvements or a new car, for example, then this is sensible, providing the borrower is sure they can afford the repayments.
"But if the borrower needs the money for day-to-day living expenses, then this is unwise borrowing and those people would be best advised to take action quickly to address this.
"There are various debt solutions available to help with a wide range of situations. For example, if the borrower can't afford their existing debt repayments but can afford to repay the debt within a reasonable timeframe, a debt management plan might be appropriate.
"For more serious debt problems, a more suitable debt solution might be an IVA [Individual Voluntary Arrangement] or bankruptcy.
"The right debt solution will differ from person to person, which is why getting advice from an expert is important."
Notes to Editors
One of the UK's leading financial solutions providers, Think Money is based in Salford Quays, Manchester, and employs around 800 employees to deliver a comprehensive range of debt solutions such as debt management plans, IVAs and debt consolidation loans, as well as various other financial products.
Think Money defines its mission as 'To educate, rehabilitate and advise on all aspects of financial management'.
For more information, contact Melanie.Taylor@thinkmoney.com (0845 056 6480) or visit the Think Money website at http://www.thinkmoney.com/.
Think Money debt management page: http://www.thinkmoney.com/debt/debt-management/