Thousands of Britons pushed towards loan sharks

Tens of thousands of people with debts have contacted a loan shark, new research suggests.

A survey by insolvency trade body R3 found that as many as 67,000 people have been in touch with a loan shark or doorstep lender, while thousands more have considered doing so.

The report also revealed that 23% of people struggling with debt are avoiding the people they owe money to, while nearly one-third have hidden their financial problems from their family.

Steven Law, president of R3, said that going to a loan shark or doorstep lender rather than seeking more traditional forms of finance such as personal loans could "simply build up a larger store of debt and create more pressure".

"We must highlight the importance of obtaining professional advice over panic measures that will worsen the problem," he advised.

"Post-recession, we stand on the brink of a personal insolvency crisis that will take years to work through the system."

The report follows a recent warning from Citizens Advice to avoid fake personal loans, which can often be identified by the lender’s insistence on receiving a set-up fee. 

Source: compateandsave.com