Banks scorned as consumers embark on debt binge
Article by Mozo
Consumer Action Law Centre director Nicole Rich told the Herald Sun that although many banks closed their door to customers on an unsound financial footing in the immediate wake of the financial crisis, many are becoming worryingly liberal in their current credit card, home loan and geared investment lending strategies.
She warned that the low interest rates seen in recent months may exacerbate problems for debt-laden Aussies in the future.
Ms Rich explained: "The risk is when rates stop being really low they won’t be able to afford the repayments. It is lender conduct that is contributing most to this. Lenders are encouraging us to borrow."
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