Home » News » High cost credit and failing to switch crushing families in debt

High cost credit and failing to switch crushing families in debt

High cost credit and failing to switch crushing families in debt

Friday, 9 March, 2018

Citizens Advice is demanding action from the Treasury to save thousands of struggling households.

High amounts of debt, tight budgets, and dwindling savings are driving many families into the gutter, according to a recent report from the consumer advice charity.

People with “volatile incomes”, such as those working zero-hour contracts, are up to five times more likely to rely on high-credit products and ‘quick cash’ loans to get by.

Fight back by switching

Putting a tight lid on household bills is the best way to consistently save money and fight back against building debts.

Switching utilities, broadband or slashing bills by dropping expensive mobile contracts for cheap SIM Only deals, is vital if you’ve run past the end of your contract.

Jacked-up contracts can catch you by surprise and cost you a lot of money, so switch providers as soon as possible to stay on top of the best deals.

Pop your postcode in the box and start saving easy money today

Please enter a valid postcode to check availability in your area.

Paying more for less

Low-income families can end up paying 400% more than a product’s value in “rent-to-own” schemes, often pushing them into deeper debt.

Interest rates for these products is often up to 99.9%, but it’s even worse for instant-cash loans.

Doorstep lending companies – also known as payday loan firms – offer short-term loans up to £1000, then come knocking on your door every week to collect repayments. The interest rates on these loans can be as much as 1557.5%.

The total debt built up by doorstep lending has more than doubled since 2014, and it’s only going to get worse as more and more are dragged into the poverty hole.

Citizen’s Advice is leading an inquiry into household finances, and have presented a report of their findings to the Treasury Committee. with support from charities, Stepchange, and the Big Issue Foundation.

MAIN IMAGE: PunkToad/CC BY 2.0

Samuel Newman author picture

By:

Samuel Newman is a consumer journalist and blogger based in Sheffield.

News What's the story?

Keep up with the latest developments in UK broadband.

Home broadband speeds are improving – but how quickly?

It’s comforting to know our internet is getting faster, but progress still lags behind Government targets.

Home broadband speeds are improving – but how quickly?Home broadband speeds are improving – but how quickly? Read more

The biggest malware threats of 2020…so far

It’s been a year few of us will forget in a hurry, and we're only halfway through.

Read more

Instagram could become the main news source for young people.

Reuters finds changes in the way younger users consume the news.

Read more

Help Learn with us

Make the most of the internet with our broadband library.

The importance of reviewing and renewing your broadband contract

Even if you have a busy family life and a demanding career, it’s vital to set aside time for reviewing and renewing your broadband contract

The importance of reviewing and renewing your broadband contractThe importance of reviewing and renewing your broadband contract Read more

How to check if your broadband is down

It might seem obvious that an outage has occurred, but there are easy ways to check if your broadband is down, or whether the problem is more localised

Read more

A guide to Big Tech alternatives.

It seems like we’re reliant on a small group of companies, are there alternatives?

Read more

Quick tips for boosting home broadband speed

Read more