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People 'Must Avoid' Unregulated Loan Lenders

Dec 24, 2007
Consumers who are struggling in managing their money should resist the temptation to borrow from unregulated lenders, an industry expert has advised.

According to Iain Wrenshall, director of debthelpuk, those with problems in meeting various demands on their spending, such as utility bills and credit cards, must avoid unscrupulous providers despite the help with money that they appear to provide. However, he stated that following the credit crunch people may increasingly look to get a quick loan from wherever they can, as numerous mainstream providers continually curtail their access to cheap secured loans and other competitively-priced forms of borrowing due to problems experienced in the wider financial markets.

He said: "It is extremely important that people avoid going to unregulated lenders. There is the personal threat to their wellbeing if the lender fails to abide by the law and the protection that the law gives the borrower".

Mr Wrenshall added: "Generally, people ignore the root of the problem ... they are usually spending more money than they are able to earn." As such consumers will carry on to "lean more heavily on credit", he pointed out that their capacity to take on more borrowing will continue to diminish.

However, the director stated that there also "legal mechanisms" to allow those struggling with their money management, whether this is through loans, store cards, overdrafts or other means, to get themselves out of financial difficulties. In addition, he put forward that many people view applying for a consolidation loan as a means of getting to grips in problems with spending. The application for such a loan could allow borrowers to merge debts owed to a number of creditors and companies into a single low-cost repayment. In turn, this may leave them with more disposable income at the end of every month.

Consumers who are concerned that they are finding themselves in an untenable financial position and are not able to access a cheap loan are urged to seek out professional help. By doing so, people may be able to discuss the various options, which could include a debt consolidation loan, available in helping them to get back on their financial feet.

After consulting with an advisory service, those struggling to manage their money could find that a low-rate loan from a reputable provider could be one way in which to get to grips with their economic situation. The application for such a loan may assist many of those struggling with their finances to meet essential demands on their spending, household bills and credit cards for instance, with greater ease.

Meanwhile, a recent study carried out by Birmingham Midshires revealed that an ever increasing number of Britons are making use of the internet to help them make financial decisions. Research from the firm showed that out of those looking for help with money, ranging from personal loans to savings accounts, some 55 per cent will visit a price comparison website, while 46 per cent seek guidance from an independent financial adviser. The survey also found that about a third of people will ask a friend for advice on money.
About the Author
Steve Smith writes for 1 stop finance shop where visitors can apply for UK cheap consolidation loans and also focuses on UK personal loans and loans for bad credit for UK residents.
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