Friday 14th of January 2011
People having a hard time keeping on top of their spiralling debt may wish to ask individual voluntary arrangement questions to help with their plight, rather than seek help from high-interest lenders, following the comments of one expert.
Tim Nichols, spokesman for Child Poverty Action Group, warned people are turning to these loans out of desperation, rather than because they see them as attractive deals.
The industry figure noted offers from high-interest lenders are "a trap that can keep people in spiralling debt for years".
He explained those struggling to pay their bills should correspond with their utility provider to explain the situation.
The government must begin to take action to ease the problem, through providing more access to grants and offering affordable credit to the poorest families, Mr Nichols added.
His comments come after a report by Save the Children revealed low-income households are paying more for basic goods and services than those on higher salaries.
By Kimberley Parsons
- Debt consolidation loans falling, figures show
- Britons 'changing attitudes' towards debt management
- Homeowners 'more concerned with debt management'
- Low interest rate 'contributing to debt management efforts'
- Debt management growing in importance, survey finds
- Consumers get ready for 'financially difficult' 2011
