Borrowers in the UK would save £37 million over the Christmas season if they could access the best rate of homeowner loan credit, the Housing Corporation has said.
The group has issued a warning that many are forced to borrow from doorstop lenders to fund Christmas, facing best rate interest offers of up to 600 per cent.
The prospects of those forced to turn to illegal loan sharks are even worse, the Corporation added, facing homeowner loan interest rate charges of up to 8,000 per cent.
In an attempt to improve access to legitimate credit, the Housing Corporation has launched a programme to offer advice, and to help people find affordable borrowing.
“At Christmas, every parent is under the same pressure to make it special for their children,” Jon Rouse, chief executive of the Housing Corporation told the Guardian.
“But if they borrow from doorstep lenders, they risk the roof over their heads in return for a day’s happiness.”
Debt advice agency One Advice estimates that 2.4 million people are still paying off borrowing from last Christmas, while another 687,000 only cleared their debt in November.
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