Loan sharks cashing in on the cost of living crisis

The cost of living crisis is having a big impact with increasing numbers of people struggling to pay everyday bills and stay afloat financially. Illegal money lenders are taking advantage of the situation, preying on vulnerable and low-income households.

Although it might seem tempting to borrow money from a loan shark, remember these people operate illegally and although they may seem friendly at first, any money you borrow will come at a high price. They don’t provide any paperwork and charge interest rates at a much higher rate than any bank or credit union (often people pay back double the original amount borrowed). All too frequently people are even pressured into borrowing more money to repay one illegal loan with another and end up trapped in spiralling debt and living in fear.

Plus, loan sharks often use intimidation, threats and even violence to recover their money, meaning you could be putting you and your family in real danger by accepting any money from an illegal doorstep lender.

Unfortunately recent research from Fair4AllFinance shows that increasing numbers of low income households in full time work are turning to unofficial lenders in their struggle to make ends meet.

But if you are finding it hard to pay your rent and bills and put food on the table there is support available and organisations who can help. You do not have to turn to a loan shark.

You may be eligible to receive financial help from the Household Support Fund including a £50 supermarket voucher or a one-off payment to help pay your housing or Council Tax bill. Plus there are local food banks and community larders to ensure you can feed your family and also receive support to pay your energy bills without having to turn to illegal money lenders.

If you are worried about debt you can talk in confidence to the friendly expert advisors in our Welfare Rights & Money Advice Team and if you are struggling to pay your rent please email our Customer Payment & Debt Team or call 023 8083 3388 so we can work out a payment plan and ensure you don’t lose your home.