Debt sufferers told to avoid loan sharks

People with debt management problems should not turn to loan sharks for help, one expert has said.

Beccy Wilks of the Money Advice Trust recommended that those who need to clear debt quickly seek guidance from independent organisations, which will be able to outline the range of options that are out there for consumers requiring affordable credit solutions.

“It’s a good idea to get free debt advice first from National Debtline, CCCS (Consumer Credit Counselling Service) or CAB (Citizens Advice Bureau),” she remarked.

Andrew Smith, marketing director of debt resolution providers, ClearDebt, commented: “Any member of the Debt Resolution Forum, such as ClearDebt, will provide free, impartial advice to people with debt problems, although, like most other providers, they will charge a fee if debtors subsequently choose to enter a plan with them.”

Ms Wilks added that it is important that people in vulnerable communities have access to these types of services so that illegal money lenders can be stopped and claimed the government has already had success from its Stop Loan Sharks initiative.

Earlier this week, the New Local Government Network stated that up to 200,000 people in the UK are at risk from loan sharks as they are not able to obtain credit from traditional lenders.

By Chris Trimble