Is it time to put a limit on the credit we get

Is it time to put a limit on the credit we get

Views BlogsLiverpool BlogsCommentLettersSend a Story Video or PictureCREDIT card debts are crippling the country after reaching a record In north Liverpool alone last year, the Citizens Advice Bureau dealt with nearly of debt.

Banks and credit card companies continue to meet with condemnation because of irresponsible lending.

And recently, more and more cases have come to light where people have taken their own lives because their debts drove them to despair.

Now MPs across the country have demanded the industry looks at its confusing interest rate calculations, extortionate penalty charges and failure to stop customers falling into debt. A new report by the Treasury Select Committee says customers deserve a better deal and called on credit card issuers to encourage responsible borrowing.

The report says it is impossible for the public to compare credit card interest rates for value because companies use different calculations.

It says the current credit history data is inadequate and leads to debtors overcommitting, and expressed concerns that payment protection insurances are missold by staff chasing commissions.

The committee has called for honesty boxes stating interest rates, charges and consequences of making only the minimum repayment to be printed on statements.

Banks are refusing to reveal how much they earn each year from charging their customers penalties.

But are the companies ruthless in making money from vulnerable debtors? Or should individuals take responsibility for their own actions, no matter how illjudged?