Unregulated lenders ‘ineffective’ route out of debt

As people struggle with their debts, it is “extremely important” that they do not seek help from an unregulated lender, warned Debt Help UK.

The consumer debt advice service has advised that people struggling to meet repayments of their debts should not think that further borrowing will help their situation.

Approximately 165,000 homes in the UK turn to unregulated lenders – otherwise known as loan sharks – for help with their debts.

However, director at Debt Help UK Iain Wrenshall, warned: “There is the personal threat to their wellbeing if the lender fails to abide by the law and the protection that the law gives the borrower.”

He explained that there are legal measures in place to help individuals who find themselves in that situation and that professional debt advice was the best route to take.

Over Christmas, the British public is anticipated to overspend by £4.7 billion, according to figures from Lloyds TSB.

© Adfero Ltd

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