Residents of the Lincolnshire district of South Holland have been warned recently against taking out payday loans this festive season, as debt counsellors express fear that too many Brits may run up unmanageable amounts of debt through these short term loans.
While instant cash loans are ideal for helping those in need of cash in a hurry to meet unexpected costs, the Citizen’s Advice Bureau of South Holland feels that it could be all too easy for some residents of the East Midlands district to slip into massive debt. A group of insolvency experts recently claimed that, as the economic landscape of the UK persists in being uncertain and rocky, millions of Brits will most likely avail themselves of payday loans over the coming six months.
Downing Street has gone on record by stating it is attempting to regulate providers of payday loans through the institution of an industry-wide code of practice. This is in spite of the Consumer Finance Association’s statements stating that the scale of the problem needs to be disputed.
The South Holland CAB has remarked that it has already experienced quite a few clients who have sought out advice after running afoul due to payday loans. Diane Clay, CAB manager for South Holland, remarked that the repayment fees associated with payday loans can be quite expensive, and these fees and charges can add up all too quickly if a borrower neglects to pay the money back on the date repayment is due, adding that lenders can take steps to come after borrowers in order to regain their cash from those who fail to repay the loan in full.