Thursday 16th of July 2009
Seeking individual voluntary arrangement (IVA) advice could be a better option than turning to a loan shark in order to deal with financial commitments.
A loan shark has been found guilty of threatening and intimidating one of his customers, many of whom he charged interest rates of up to 2,437 per cent on loans provided by his illegal money lending practices, the Manchester Evening News reported.
Cash-concerned Britons who are struggling to keep up with their unsecured loan repayments may have considered a loan shark as a quick way to obtain money to pay off other borrowings.
However, IVA advice may be a more sensible avenue to take and could also prevent creditors from taking further action, something which may be a concern for many borrowers.
The newspaper noted that John Kiely, 36, of Chapel-en-le-Frith, Derbyshire, is the first loan shark operating exclusively in Greater Manchester to be convicted, according to investigators.
Meeting unsecured loan repayments could be even more difficult for some, after Moneyfacts.co.uk revealed that over two years, the rate on a £5,000 loan has increased by 3.7 per cent.
By Ashley Littley
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- An IVA could help you save for your kids' futures
