Families call for help as the need to take out loans increases
28/01/09
The number of people calling helpline numbers for help has significantly increased. There is a worry that with the UK officially in recession, hundreds of families will be drawn into taking out loans in an attempt to try and pay for expenses.
After the Christmas break, a record number of phone calls were made to the Consumer Credit Counselling Service. The elderly and families were some of the people calling with worries about not being able to pay for mortgages and the rise in the cost of heating and electricity. Many were having no option but to take out expensive loans to help them with their money worries.
People are expected to take out loans to consolidate their debts to help to avoid confusion in paying off many different credit cards, loans etc.
Chairman of the Debt Managers Standards Association, Michael Land commented, “In many ways it is the people with smaller debts and no income who are the hardest hit and find it difficult to get good advice, people with £3,000 of credit cards debts who have just lost their job.”
