27 Jun Ever heard of Safer Borrowing?
Last week we looked in detail about what makes borrowing so risky. But what if you could make it safer?
If you’ve been following Creditspring for a while, it might not be new to you. Safer borrowing is kind of our thing. Like fruit is to smoothies, or reasonably-priced wooden tables and chairs are to a famous Swedish furniture retailer. We want to be known for making borrowing safer.
What is ‘Safer Borrowing’? Or, if you’ve heard of it, why does it matter to us at Creditspring? We’re going to break it down.
A helping hand, not a slippery slope
Safer borrowing is about making credit available to people that need it, in a way that’s as low-risk as possible. It’s not a complicated concept, but it’s still pretty groundbreaking. Even the FCA is making it a priority to stop people from falling down the spiral of debt, going on to highlight how persistent debt can cost consumers £2.50 for every £1 they repay.
Borrowing should be a helping hand, not a slippery slope. What good is a credit product that leaves people in worse financial health than when they started? People have got enough going on in their lives. It’s time for credit that helps, not hinders.
At Creditspring, we want to do exactly that. We want to give people access to safe and affordable credit, not lend them way more than they can repay and keep them in debt. We won’t tempt people to borrow more than they can afford, and we won’t impose outrageous fees and charges for people that are having trouble repaying.
No artificial flavourings, colourings or preservatives
What’s a key difference between healthy food and junk food? Well, with junk food you often don’t know exactly what’s gone into it. It’s the same with money: one of the best ways to make borrowing safe is to take out all of the confusion, and let the borrower know exactly what’s going on. There’s nowhere to hide when you make things easy to understand.
It’s so easy for lenders to hide hidden fees and charges that they almost don’t have to try. A typical credit agreement from an ordinary lender might involve a complex combination of fees, interest charges and costs hidden amongst the fine print. The worst bit? It’s nearly impossible for the people borrowing to spot, with or without a masters degree in economics.
At Creditspring, the more our members know about what they’re paying us, the better. Partly because we think they’ll love how simple and affordable our prices are, but mostly because a customer in the know is a customer that’s safe. If you understand what your credit is costing you, and how much you owe at any given time, then you’re much less likely to let things get out of hand.
When was the last time you saw an offer to borrow money, with a cost that you could work out in your head? Exactly.
Not a product, a way of life
Safer borrowing isn’t just about reducing the risk of the spiral of debt. It’s about empowering people to make better financial decisions. Protecting people from getting into toxic debt is one thing… but what if there was a way to help people improve their financial wellbeing when they borrow?
That’s what we’re aspiring towards. Preventing the bad is only half the battle – we want to encourage the good as well. How? That’s simple.
We want to help people to think ahead with their finances, and reward the forward-planners. What good is borrowing cheaply if you’re struggling to budget properly? Safer borrowing is just a small part of financial wellbeing, but we think that access to safe borrowing is a perfect start towards a more financially healthy you.