- Tuesday, 15 June 2010The fear of
bankruptcy is making those struggling with debt turn to
loan sharks instead of seeking professional help.
As many as 67,000 (seven per cent) people facing financial trouble have contacted a
loan shark, claims R3, an insolvency trade body.
R3 conducted a poll of 91,000 individuals who claim they are in financial difficulty but have not sought help.
Steven Law, R3 president, said: "Clearly traditional fears of what others may think or the fear of
bankruptcy is still putting people off seeking a solution to their problems.
"Unfortunately, avoiding the problem or going to the wrong source is likely to only increase the eventual likelihood of
bankruptcy."
Law also warned consumers not to approach
loan sharks as this can often worsen the situation and instead people should seek professional help.
Chris Tapp from the charity Credit Action told borrowers last month that
bankruptcy is not always the only option and agreements can be reached with creditors.
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