With the debt crisis growing leaps and bounds in the country, the government has started making ‘special’ moves to nail the situation before it becomes any worse. Especially that we are about to enter a fresh New Year, several discussions are in progress, in terms of tackling the country’s future financial situation better.
One such move is the ‘much discussed’ proposal given by Financial Services Authority to curb the growing mortgage debts running high in the country now. Interestingly, this proposal stands out because of its unbiased and objective nature of focusing on both the borrowers and the lenders alike.
There are several factors considered in this proposal which will give additional responsibilities to both parties and will unload some of the responsibilities that the government has been shouldering till now. The objectives include, borrower’s affordability test that has to be done by the lender and the borrower’s need to check for ‘hazardous financial factors’ in the product offered by the lenders.
In the current situation, many people opt for high interest loans like payday loans and mortgage loans, and most customers are not aware of crucial money factors. They end up paying huge amounts of money in the end of the year or turn towards the government for debt relief. This situation could be turned the other way round once this proposal gets passed, as both the borrowers and lenders are made accountable for their buying and lending.