Debt-struck Brits turning to doorstep loans
Debt-struck Brits turning to doorstep loans
Monday 23rd June 2008
According to credit rating agency Equifax, 31 per cent of people who confessed to being concerned about their financial situation had opted for a loan from a non-mainstream lender in the last year.
The finding is worrying due to the fact that loans of this type typically charge significantly higher repayment rates - thus putting more pressure on consumers already struggling with mounting credit card debt and higher mortgage repayments.
Neil Munroe, external affairs director for Equifax, said: "We urge people to talk to their lender if they are struggling with repayments in order to avoid trouble further down the line.
"Being as well informed as possible is also crucial and consumers can apply for a copy of their credit report to gain a clear picture of their financial status and concentrate on paying off their most expensive debts first."
Worsening conditions in the job market, coupled with the rising cost of living, are expected to fuel a huge rise in the number of Britons turning to debt management solutions this year.
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