Xmas loan rejections could have "positive impact", says CSSS

The increased number of Brits being rejected in their applications for small loans could have a positive impact, as those who can’t afford to borrow avoid getting into debt, according to the Consumer Credit Counselling Service (CSSS).

James Ketchell, a CSSS spokesman, believes the tighter restrictions that appear to be being exercised by loan providers could for people to be more diligent with their funds over the festive period.

He said: "People will have to be a lot more careful in their spending than they have been in the past perhaps, and really look at the cost of all the expenses at Christmas. They will have to live within their means.

On the large number of loan applicants that could be rejected this Christmas, Mr Ketchell commented: "It might be that this has a positive impact and we might see fewer people, because if the credit isn’t available they can’t get it."