Subscribe!loan sharks are not an alternative to debt advice says minister
Consumer Minister Ian McCartney has urged borrowers to take advantage of free debt advice services before resorting to dealing with loan sharks.
The Minister, who will open a new London office for the Money Advice Trust (MAT), which runs National Debtline, said many people did not realise that free, impartial support was at hand to help them avoid debt problems.
“My advice to people struggling with debt is to pick up the phone - there are people who can help you find a solution and avoid the sharks.”
Mr McCartney, who recently visited Illegal Money Lending Teams cracking down on loan sharks in Birmingham and Glasgow, said:
“Loan sharks are lowlifes whose primary purpose is to rip you off. Many of them will resort to intimidation and violence to take money off the most vulnerable in our communities who know of no other borrowing options.
“Often it feels like there is no alternative than to turn to loan sharks but many people don’t realise that debt advice and information is available for free. National Debtline is there to help.”
National Debtline’s advice includes getting in touch with lenders straight away to explain your difficulties, and not to give up trying to reach an agreement on repayment terms even if creditors are difficult.
The Department of Trade and Industry supports the many aspects of MAT’s activities; in particular, by providing £1million annually to National Debtline.
The Government is also providing £ 47.5 million in a two-year programme to fund face-to-face debt advice, helping tackle debt for tens of thousands of people.
This funding will pay for over 500 new debt advisers to help people get their debts under control, and will fulfil the Government’s commitment to achieve a step change in the availability of debt advice.
As part of the Face-to-Face Debt Advice project, financed by the Financial Inclusion Fund, MAT is providing training for the majority of the advisers due to be recruited over the next two years.
Consumers can call National Debtline, on 0808 808 4000.
For debt encumbered consumers who feel that turning to loansharks is their only option in obtaining the funds they need to alleviate their financial situation, there are very often legitmate lenders who, whilst charging higher rates than those offered by high street lenders to ‘prime’ borrowers. Sadly, ’sub-prime’ borrowers often believe that the only kind of lender available to them is a loanshark and don’t look for a legitmate alternative as a result. The truth is that there are niche lenders, funded by some of the biggest financial institutions in the world, whose business plan is built around high risk lending to sub-prime consumers whose circumstances may be as adverse as having dozens of CCJs, 12 month or more of mortgage arrears, or even in an IVA or bankruptcy! Such sub-prime loans do of course carry higher APRs, sometimes in excess of 20%, but nowhere near the levels charged by the loansharks, which can sometimes be over 1,000%.
Secured loans specialist The Loan Helper prides itself on delivering realistic and affordable solutions for homeowners unfortunate enough to find themselves in such dire financial circumstances. With a intimate knowledge of the lending criteria of the 16 lenders on it’s panel, The Loan Helper’s expert staff can usually help beleaguered borrowers to turn their finances around with an appropriate and affordable lending solution. You can contact The Loan Helper on 0845 003 0066 or by sending an enquiry via their website at www.theloanhelper.co.uk.