CML welcomes launch of consumer 'debt test'
The CML worked closely with the Financial Services Authority in developing the test and chaired the borrowing working group under the FSA's strategy for improving the financial capability of consumers.
The debt test, which can be completed in just a few moments, asks consumers about their personal circumstances, income and borrowing. The answers are analysed online, providing consumers with instant information and feedback on their borrowing commitments, tips on how to avoid debt problems and help to manage any difficulties they have.
The CML's website provides a link directly to the FSA's online test. The test can also be taken by visitors to the BBC website. The CML welcomes the test as an important step towards making generic advice about borrowing more widely available, so that consumers will be able to get even more useful information and help before taking out a loan.
The CML's director general Michael Coogan said:
“We spent much of last year helping to develop the debt test and so we are very pleased to see it launched today. Borrowing can enhance the lives of consumers, and provides the route by which most people become home-owners. But it is important for consumers to have a clear understanding of their commitments, and the debt test is a useful and highly accessible tool.”