Don’t let the loan sharks bite you!
The UK authorities have this month set up a new hotline for those who have been caught by loan sharks and are falling further and further into debt. Despite a serious crackdown by the UK authorities over the last decade there are still significant illegal moneylenders prowling the more deprived areas of the UK offering instant cash at astronomical interest rates. Unfortunately the onset of the UK recession has increased the desperation of many people in these deprived areas and played into the hands of loan sharks.
It is estimated that some 165,000 UK households are currently repaying debts to illegal moneylenders at rates which can reach thousands of percent if payments are missed. While the short-term situation is unlikely to change dramatically for many people in the UK it is hoped that by offering professional advice and gathering specific information to support prosecutions, many loan sharks in the UK will eventually be closed down.
Intimidation, violence and threats have been reported across the UK and while many people have until now been afraid to speak out it is hoped that the hotline will give those in potential trouble an outlet for their concerns. It is vital that you avoid loan sharks at all costs and take professional advice regarding your debts, as they can often be restructured and if the worst comes to the worst independent voluntary arrangements or bankruptcy are not the end of the world.
