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.

Why is the UK worried about Huawei and what does this mean for 5G?

The Huawei controversy continues as Boris Johnson says we ‘will not risk British security”.

Why is the UK worried about Huawei and what does this mean for 5G?Why is the UK worried about Huawei and what does this mean for 5G? Read more

Unmissable streaming TV shows for 2020

Telly has moved online - let's dive in to the most bingeworthy releases due this year!

Read more

The most complained about home broadband services

Who's failing to live up to expectations?

Read more

Brits spend up to 4.9 hours surfing the web at work!

Read more

Help Learn with us

Make the most of the internet with our broadband library.

What are the differences between HD, UHD, 4K and 8K?

What are the differences between HD, UHD, 4K and 8K?What are the differences between HD, UHD, 4K and 8K? Read more

How far can augmented reality take us?

Read more

Keeping the Internet of Things secure

Read more

The best broadband routers for 2020

Read more