Illegal lenders fuelling UK debt problem
Illegal lenders fuelling UK debt problem
Thursday 10th July 2008
According to debt advice charity the Money Advice Trust, the number of consumers who have taken out a loan with non-accredited companies currently stands at 165,000.
It is thought that the trend is being fuelled by mainstream lenders' increasing unwillingness to grant credit to consumers and use of tighter loans criteria.
This is a consequence of the credit crunch, which has hit banks and building societies balance sheets and made them more risk-averse.
The research also discovered that the number of insolvencies in England and Wales hit 25,264 during the first three months of this year.
News of Britons' mounting debt problems comes after TDX Group predicted that the number of DMPs (Debt Management Plans) taken out in 2008 will double from 160,000 in 2007, to 320,000.
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