Consumers warned to avoid high interest loans
21/11/08
According to debt charity Credit Action, UK consumers have had to resort to taking out high interest loans and credit cards in order to finance their debts. Credit Action have advised consumers to try to avoid high interest loans if at all possible and think about the consequences of taking out such loans as interest charges are extremely high on many of these products.
Research carried out by Abbey Credit Cards has looked at the amount of disposable income available to an average consumer. Compared to 2006, disposable income has fallen by around twenty-nine per-cent and UK residents have an average of just £382.21 left.
“People have got to understand that it is very expensive and if they are doing it they must only do it as a one off and not let it roll over,” said Francis Walker spokesperson for Credit Action. “If you start rolling over things that's when the real problems happen and I think with the payday loans the APR is over 3000 per cent and things like that."
