- Friday, 11 December 2009Approximately half of UK borrowers are relying on expensive loans in order to stay afloat, it has been revealed.
That is according to the Office for Fair Trading, which indicates that 52 per cent of borrowers are dependent on "doorstep lending" – unsecured, short-term loans from lending agents who charge high rates of interest.
People's reliance on such high-risk lending could result in them falling further into debt and coming to rely on bankruptcy-avoiding measures such as individual voluntary arrangements (
IVAs).
Frances Walker, head of media and public affairs at the Consumer Credit Counselling Service, said the recession was the key reason behind people taking such measures.
She said: "This is due to the credit crunch and the fact that other forms of credit have dried up for many people who are less well off or without a good credit record."
It was also revealed that 26 per cent of borrowers are believed to be dependent on credit cards.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
| |
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ
Consumer Credit Licence Number: 0580960