Many tenants, particularly those of councils and housing associations can be more vulnerable at Xmas to doorstep lenders and in a week where there has been much political discussion about capping the cost of Payday loans, TTV wants all tenants to be aware of the pitfalls of lending at this time of the year from certain loan providers.
Don’t borrow money from doorstep lenders
People who knock on your door and offer loans are to be avoided. They are usually unlicensed and can charge enormous interest rates making it almost impossible for you to pay the loan back. Unlicensed lenders are often referred to as loan sharks and with good reason. They are predators and seek out the most vulnerable people during the Xmas period, encouraging them to borrow money to pay for Xmas gifts and other expenses likely to be incurred over the festive season.
NEVER be tempted to accept a loan from doorstep lenders because if you do find it difficult to pay the loan instalments their methods of attempting to get the money back can include harassment and threatening behaviour.
Payday loan companies charge high interest rates
In recent years, the UK has gone through a time of economic crisis that most of us have never experienced in a lifetime and the ability to manage money effectively is a skill we have all had to learn. With few banks prepared to loan money, Payday loan companies have emerged in vast numbers offering short term loans with interest rates that many of us find hard to believe are legal. The cost of a loan from some of these companies can rack up to over 5,000 per cent annually if allowed to roll on.
Research loan providers on the internet
At this time of the year it can be tempting to take out these types of loans to tide you over Xmas but if you do need a loan, and more importantly are in a financial position to pay it back, make sure you use reputable, licensed lenders. Do research on the internet and take particular note of the interest rates. Check out the reviews of these companies to learn about consumers’ experiences with them and if they are predominantly bad, don’t use them.
If you do decide to take out a loan this Xmas ensure that you read every detail of the small print before signing, when you will be expected to repay the loan and what it will cost in total.