According to one instant cash loan expert, Brits currently finding it a struggle to keep their heads above water financially should avoid short term loans, only using them as a last resort.
Informed Choice chartered financial planner, Martin Bamford, remarked that cash-strapped Brits should first exhaust every possibility for finding quick loans before resorting to instant cash loan providers, as the added cost of doing business with such a provider can oftentimes lead to expensive repayment. Mr Bamford said that such loans should nearly always be the last place you turn to, as raising short term cash through them can be ‘hideously expensive.’
The chartered financial planner said that under no circumstances should you end up using these instant cash loan facilities on a regular basis, because doing so can quickly exacerbate any debt problems people are currently experiencing, which could make an already bad situation quite worse.
A small but significant number of instant cash loan providers in the UK have been revealed to possibly have been engaged in quite spurious behaviour, with reports of certain market players potentially breaching the Consumer Credit act, inflating APR interest rates, and having lacklustre privacy provisions set in place to protect the personal details of their customers.
The instant cash loan industry was quick to respond to the allegations, stating that not only does it provide a valuable service to its customers in a time of lingering distress from the worldwide banking crisis and resultant economic downturn, the majority of instant cash loan providers were legitimate businesses and did not engage in such questionable practices. With the cost of living rising at an accelerated rate in the UK, industry leaders said, consumers’ bills are getting larger while wages have remained mostly stagnant.