We’ve all read about how scandalous the practices of these companies are even if some of them present a humane and decent public facing profile through media and television advertising.
I think the key thing to look for when considering borrowing off such loan-shark companies is the financial illustrations and published APR rates on a loan scenario. When you see rates published like ‘equivalent to 2988% interest APR’ it’s time to say NO.
I’ve just read of a tragic case where a debtor took his own life because he’d become indebted to some of these companies and ended up owing them about 10k collectively. Staggeringly though, they still bombarded him with over 1,000 text messages regarding the debt after his death. At 6p a text x 1,000 that’s worth around £600 in text messages.
What a waste of money and the life of a good person.
This type of borrowing is relatively new and seemingly fashionable, but lending is one of the oldest forms of financial transacting in history, stretching back to biblical times.
Doorstep credit, as peddled by companies like The Provident and the re-emergence of pawn shop enterprises such as Cash Generators and Cash Converters, hit it home how reliant some people are on this type of borrowing.
Should you need good debt advice we recommend you contact your nearest Citizens Advice Bureau.