'Worrying' rise in number of people with payday and high cost credit debts

WE never want you to pay more than double the amount you've borrowed - whether it's for a new sofa or a loan to help pay your bills.

People on the lowest incomes, living in the poorest places, are paying a poverty premium - up to 7million people have resorted to high-cost credit, according to the Department for Work and Pensions. These come with exorbitant rates of interest - more than 1,500 per cent in some cases of doorstep lending.It's time to stop the credit rip-off.The most common type of debt was credit cards, with two thirds of people in this type of debt with an an average of £7,671 owed.The same again had personal loans with a whopping £8,601 owed.The top three reasons for debt were unemployment or redundancy , injury or illness or other reduced income .

Overall, the charity was contacted by 657,930 new people in 2018, up from 619,946 in 2017 - a 6 per cent rise.There has also been a particularly "notable increase" in single parents turning to the charity for help, up from 21.5 per cent in 2017 to 23 per cent in 2018.

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Parents are being pushed into thousands of pounds of debt due to sky high childcare costsCASH-STRAPPED families say they’re racking up thousands of pounds worth of credit card debt because of unaffordable childcare fees. The costs vary wildly depending on where you live, but the … She earns 24k which is the cost of there childcare so she’s working to pay somebody else to look after kids. Maybe they need to take a step back and look at there situation one of them take a career break until both the kids are at least at school when cost will be less.
Source: TheSun - 🏆 64. / 61 Read more »