Lenders should be made more responsible for curbing debt in the UK by offering debt management advice to borrowers who are having difficulty meeting repayments.

This should apply to lenders who are not associated with banks. The Banking Code stipulates that banks should fully support borrowers who are experiencing financial difficulties. However, this rule does not apply to individual lenders.

Over 37% of unsecured debt consolidation loans taken out during 2006 were borrowed from non-banks who have no obligation to offer debt advice and help when a borrower is left struggling with debt. Independent lenders should offer unbiased debt advice such as the benefits of an IVA, so as customers feel more supported when they hit hard times.

People should feel protected when they take out credit. If debt management advice was offered, it could stop a debt from escalating out of control and keep good relations between the client and creditor.

Many people want to pay outstanding debt but are unaware of the options available to them.

If creditors offered debt advice, it would have to be based upon information only and not recommendations, as some lenders could strike up deals with unscrupulous debt management companies. Therefore, lenders should simply supply information regarding the various forms of debt management available, so as clients can make their own informed choices as to which company to choose for debt help.