Debt adviser warns not to turn to payday loans

First published in News by

THE boss of an Evesham company which helps people with money management has warned residents struggling to pay the bills not to turn to payday loans.

Adrian Nichols, managing director of Evesham Debt Advisors, spoke out after worrying statistics were released by the charity Shelter revealing more people are resorting to the quick fix loans, often coming with enormous interest rates, just to cover their rent or mortgage payments.

Mr Nichols said the company had helped hundreds of people in the Vale who had taken out this type of loan.

“We had one particular case where they were paying £2,000 a month in payments to four or five payday loan companies,” said Mr Nichols.

“As a result they stopped paying the priority debts of their mortgage and they very nearly got repossessed. We were able to stop that and got them back on track.

“They were a couple in their 40s with a teenage son living at home from a Vale village. We also have people who haven’t been able to pay their rent.”

The figures released by housing and homelessness charity Shelter show rent inflation in Wychavon increased by 3.7 per cent in the last year and that average monthly rents were £596.

They also reveal one in 12 renting parents nationwide have been forced to borrow cash from their children to cover their bills and one in 33 have taken out a high interest payday loan.

Mr Nichols added: “There isn’t a social sector this has hit.

“It is not necessarily unemployed people. It has come about because credit is difficult to get these days.

“The APR can be 4,200 per cent. Nobody has any idea what that means. Often people turn to these loans as a short-term fix but they quickly become a long-term problem.”

For help with money problems, contact Evesham Debt Advisors on 01386 760000 or e-mail office@evesham debtadvisors.co.uk

Comments (4)

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4:31pm Fri 5 Apr 13

allpaydaylenders.com says...

The main issue with payday lending are not the actual payday loans, it's the regulations. If the market was correctly regulated and checked it could work fine. A few ideas there: http://www.allpayday
lenders.com/2013/04/
payday-loans-hidden-
face-of-billion.html
The main issue with payday lending are not the actual payday loans, it's the regulations. If the market was correctly regulated and checked it could work fine. A few ideas there: http://www.allpayday lenders.com/2013/04/ payday-loans-hidden- face-of-billion.html allpaydaylenders.com
  • Score: 0

6:18pm Fri 5 Apr 13

Kaylacruz657 says...

Payday that would come up in the line life would sometimes create a problem. You need to be sure of getting rid of such issues. It will really help. Thus payday loans should be tried.

payday loan
Payday that would come up in the line life would sometimes create a problem. You need to be sure of getting rid of such issues. It will really help. Thus payday loans should be tried. payday loan Kaylacruz657
  • Score: 0

6:21pm Fri 5 Apr 13

Kaylacruz657 says...

Kaylacruz657 wrote:
Payday that would come up in the line life would sometimes create a problem. You need to be sure of getting rid of such issues. It will really help. Thus payday loans should be tried.

payday loan
www.onlinelan.eu
[quote][p][bold]Kaylacruz657[/bold] wrote: Payday that would come up in the line life would sometimes create a problem. You need to be sure of getting rid of such issues. It will really help. Thus payday loans should be tried. payday loan[/p][/quote]www.onlinelan.eu Kaylacruz657
  • Score: 0

3:43pm Sun 7 Apr 13

WHU1966 says...

There was a good article last week about a new site that tries to keep people away from Payday loans. The site was quickmoneyalternativ
e.com

Maybe Eversham Debt Advisors could send people there?
There was a good article last week about a new site that tries to keep people away from Payday loans. The site was quickmoneyalternativ e.com Maybe Eversham Debt Advisors could send people there? WHU1966
  • Score: 0

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