Shelter, the organisation which campaigns on behalf of the homeless, has estimated that nearly one million Britons have taken out an instant cash loan at least once in the last twelve months to pay for urgent bills and the number of instant cash loans and no credit check loan companies just seems to grow exponentially.
Shelter’s chief executive, Campbell Robb, said that taking out one of these loans can be very appealing to anybody who is in a desperate need to cover their expenses until the next time they get paid. The instant cash loan companies offer anything from bad credit loans to same day loans but can be anything but a short term fix to people’s indebtedness.
If the debt is not repaid quickly together with the often exorbitant interest required, then the situation can deteriorate very quickly, leading to evictions and homelessness.
The Shelter boss said that the number of people in the position of losing their home had reached nightmare proportions with a new situation arising every two minutes. Mr Robb urged anybody in the position of having to look for instant credit fixes to pay off their mortgage or rent to look for advice as soon as possible.
The organisation revealed that nearly seven million Britons used credit to help pay off urgent bills which included rent, mortgage repayments and credit card debt. These people were turning to the instant cash loan companies to help find short term loans, resulting in taking on further debt to try and pay off other debt.
A spokesman from MoneySavingExpert.com, Martin Lewis said that many of the world’s instant cash loan companies had been chased out of other countries because of stiff regulation. They had incurred the wrath of governments overseas because of the often absurdly high APR rates that they charged, reaching up to 4000%. Britain was seen as the pot of gold at the end of the rainbow for these companies because of the lack of regulation practised here.
The fact that many, though not all of these companies promise no credit check loans further increases the chances of people who have had a history of being unable to cope with regular payments for general living being driven even further into debt.
The advice for anybody who is thinking of approaching an instant cash loan company for a quick loan to think again and seek advice from a not-for-profit professional body.