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Unaffordable secured loans 'partly to blame for credit crunch'

A personal finance expert has stated that banks offering unaffordable secured loans are partly responsible for the credit crunch.

David Kuo, head of personal finance at Fool.co.uk, has stated that two in seven people believe the institutions are responsible for the financial crisis the UK faces today.

One in four Britons told the company that they blame consumer culture for the credit crunch, while 23 per cent simply blame themselves.

Mr Kuo remarked that the government should also shoulder some of the blame "for lulling people into believing that there would be no return to boom and bust".

"Both the banks and the government have to take equal responsibility for the credit crunch," said the expert.

Meanwhile, the Daily Mail has stated that spiralling interest rates in addition to falling house prices have put pressure on homeowners who have taken out secured loans.

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