Monday 1st of June 2009
Consumers who are struggling with debt worries have been urged to seek advice, rather than add to their problems.
The Money Advice Trust explained that loans taken out to cover what is already owed can prove to be expensive.
Spokesperson for the charity Beccy Wilks suggested that contacting creditors to arrange alternative repayment plans would be a better option, as further loans may not be necessary.
"There are lots of different options for dealing with debts, depending on the type and amount of debt which you have," she said.
For those who owe more than £15,000, these options could include an individual voluntary arrangement.
Ms Wilks also warned of the dangers of illegal loan sharks, noting that communities should be given support in order to prevent their operation.
It came after the New Local Government network found that 200,000 people are at risk because they are unable to obtain finance from traditional lenders.
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