We don't like loose lending

Record low interest rates may be welcome because they push down the average monthly mortgage repayment, but lenders that fail to make the true cost of borrowing clear to customers are contributing to a mountain of consumer debt.

The Consumers' Association this week pointed the finger at credit card firms in particular, following the publication of two new reports highlighting the problem of soaring consumer debt. Laurence Baxter, a senior policy adviser at the Consumers' Association, said lenders were partly to blame for failing to clearly inform customers about how big a burden their debt could be.

"Credit card providers don't make it easy for consumers to compare products," he said. "There's a lot more banks can do ... they're making it very easy to clock up debt."