Illegal personal loans can mean indebted new year
15 January 2010 12:51:44
 |
| Thousands face illegal Christmas personal loan debt. |
According to the Real Cost of Christmas report, commissioned by affordable housing group Circle Anglia, an estimated 100,000 families have borrowed money in this way.
The report, compiled by think-tank the Financial Inclusion Centre, estimated that £29m was lent by loan sharks over the festive period alone, with individuals borrowing £300 on average.
It also estimated that the number of households turning to illegal lenders has increased by 22% over the last three years, from 165,000 to 200,000.
With the high interest rates, averaging 825%, and the one-year repayment periods that are typically applied to this type of loan, a £300 loan could turn into a debt of £800.
"These figures are very concerning and demonstrate the scale of illegal lending across the UK," said executive director of operations at Circle Anglia Andy Doylend.
He added that by "turning the spotlight on loan shark activity" he hoped people would seek advice on personal loans and other financial matters.
‹ Back
Other Personal Loans News
-
1m Brits use payday loans to pay for housing
Many Britons are borrowing to meet housing costs. -
Figures show pre-Xmas growth in personal loans
Many people used personal loans in the weeks before Christmas. -
Finance classes could reduce reckless borrowing
Many youngsters leave school with no knowledge of personal finance. -
One in three support extended family and friends
A personal loan could prevent borrowing from friends.
All Personal Loans News
Other Home Page News
-
Bruce Willis Boosts Russia's Trust Bank
Celebrity marketing might not be the safest choice but Trust Bank has found the recipe for success. -
Warning - credit card scam exposed
Online financial scams keep increasing every year in the UK market - learn more about the latest phishing scam and how to protect yourself from fraudsters. -
No fee and low fee cards
New Cashback and Rewards credit cards from Sainsbury's with extremely low rates. -
Retirees provide financial family support
New research shows that UK adults are still relying on their parents for everyday living costs.
All News Stories
Product Offers
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.
Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.
Please ensure that you fully read the terms & conditions of any product or policy before you decide to proceed and are fully aware of the total costs and the benefits and any exclusions or limitations applicable to the product or plan.
Please note that the product links will take you direct to the Issuer or Insurer's site direct and we cannot be held responsible for the information which they provide within their own sites. On some comparison tables we use a star rating which rates products by visitor popularity.
