When the Global Financial Crisis began in 2008 a dark mist of gloom spread across the United Kingdom with difficult times inevitable for most taxpayers. Nearly seven years have passed since the world was plunged into economic uncertainty and rates of panic loans to cover debts show little evidence of slowing down. In fact, there has been a record number of loans and credit card debt from October to December, 2014 since before the worldwide economic crash. Despite the fact that politicians warned about the consequences, even they must be surprised that Britain’s economic recovery has been so slow although progress has been made.
This progress has not resulted in prosperous times for the majority of UK citizens, however. The soaring debt problems arising from the Christmas period were expected because of the high expenditure this festive season brings, but the Bank of England England’s figures are quite concerning. They revealed that unsecured lending was at its highest since the second quarter in 2007 over the past three months.
Nearly 55 per cent of lenders revealed there was more demand in terms of unsecured learning, with 58 per cent of credit card debt also announced by these groups. Reasons for this include more appealing interest charges and larger scale marketing of credit cards. Britons borrowed an incredible sum of £1.25 billion in November –unfortunately another record since the recession. Over one-third (35 per cent) of credit card providers believe that demand, and consequently debt, will soar from January to March.
Adam Marshall, director of policy and external affairs at the British Chambers of Commerce wants financial institutions to re-evaluate their strategies after these findings. He said: “With credit availability to small firms expected to weaken in the coming months, the findings from the latest credit conditions survey reinforce the case for more radical action – by financial institutions, the regulators, the ministers building up the British Business Bank and the Bank of England itself, which must do so much more to build up a liquid market for SME debt.”
A lot of small firms have been forced to close during the financial crisis due to job losses and less consumer spending because of this. People having disposal income was crucial to their survival and increased unemployment did not help their cause. Unemployment has gradually been falling, but this did correspond with people avoiding payday lenders at the end of 2014. Going to a payday lender may seem like a last resort, but you have much cheaper and more effective alternatives.
One of these is by contacting our helpful and experienced team here at Trust Deed Scotland. We offer free, impartial and beneficial advice to anyone who calls us or visits our offices in Glasgow, Edinburgh or Aberdeen. We ensure that you take control of your finances without having to spend extortionate fees to payday loan companies and you will not lose your property if you can demonstrate you’re able to make affordable repayments. For more information contact us today – it’s time to solve your problems rather let lenders worsen them.