Increasing Need to Borrow
Research by the debt charity Step Change and the Children’s Society in Hull recently highlighted some frightening findings.
Matthew Read, chief executive of The Children’s Society, said:
This is a trend which is echoed across the country and has seen a number of enterprising lenders flood the market with a huge number of innovative new loans aimed specifically at borrowers with mounting debt and a falling credit rating.
Which lender should I trust? – try and get a personal recommendation
If you have not never borrowed money from professional lender before, especially if you have a poor credit score, it can often be very difficult to know which lender to go with.
It is especially difficult to get personal recommendations, as typically people so not tell each other when they are having to take out emergency borrowing options.
Though if you do know people who have a poor financial history and have had a good experience with a lender, then this is always a better start.
The worst that could happen – Loan Sharks!
The worst case scenario would be to end up borrowing from a loan shark. Whereas some lenders can be very expensive, loan sharks are a different proposition altogether.
They’re unlicensed, they break the law, often go knocking door-to-door and at worst use highly questionable methods (including violence and threats of violence) in order to get their money back.
Avoid the risks and do your research
The best way to make sure you do not end up borrowing from a ‘bad’ lender, is to make sure you do your research.
So on top of asking friends and family for reccomendations, there are plenty of lenders on-line, though you need to make sure they
- Have a Credit Consumer Licence (CCL)
- Have reasonable fee, charges and terms and conditions
It is worth spending a few hours researching the different lenders, and summarising the differences between them.