Loan Sharks Are Not The Answer

Worrying research from R3, the industry body for insolvency, estimates that up to 67,000 people struggling with debts have contacted a loan shark or doorstep money lender, and even more have considered doing so.

R3 President Steven Law says: “Going to this source for financial resolution will simply build up a larger store of debt and create more pressure and stress. We must highlight the importance of obtaining professional debt advice over panic measures that will worsen the problem.”

Worrying research from R3, the industry body for insolvency, estimates that up to 67,000 people struggling with debts have contacted a loan shark or doorstep money lender, and even more have considered doing so.

R3 President Steven Law says: “Going to this source for financial resolution will simply build up a larger store of debt and create more pressure and stress. We must highlight the importance of obtaining professional debt advice over panic measures that will worsen the problem.”

We couldn’t agree more with Steven Law; for people with a debt problem borrowing more money – especially from a loan shark – is simply not the answer. For anyone struggling to budget each month and repay their debts we would always recommend they speak with a trained debt advisor to get professional guidance and advice.

The survey also highlights that almost one in four people are avoiding contact with the people they owe money to. Unfortunately, this can simply make the problem worse. Our debt analyser tool is free to download and is designed to help people to calculate exactly how much money they should be offering to which creditors and which debts they should treat as a priority. It creates letters and a financial statement for people to send to their creditors – helping people overcome their fear of explaining their situation to the people they owe money to. For people who need a helping hand, our debt advisors work through each step of this process with them.

The research also highlighted that anyone struggling with debt is certainly not alone. Over 900,000 people are believed to be in this situation but have not yet sought help. Contacting a charity like the Debt Advice Foundation is a brave first step in the right direction.