Consumer debt and the additional problems caused by the recent past appears to be driving up the numbers of people borrowing money from illegal lenders and loan sharks. Undoubtedly many people seeking a quick cash injection could well be lured into the temptation of easy money.
With borrowing from traditional lenders remaining difficult, many consumers are being forced to turn to the money lending fraternity.
Commenting, Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers Irwin Insolvency said “These people know exactly where to target people on low incomes, particularly younger people and single parents who are perhaps a bit more inexperienced or are finding it difficult to get by financially.”
This type of borrowing simply creates a cycle of debt which is difficult to get out of with such lenders charging massive rates of interest which simply means that in a short space of time borrowers will end up paying back far more than was borrowed in the first place.
Many illegal money lenders can often use extremely unpleasant methods to obtain their repayments. The current diminished availability of regulated sub-prime credit is set to continue and people in financial trouble should be obtaining free debt advice from the debt charities not being forced to borrow from illegal sources.