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Loan sharks prey on thousands of families
More than 100,000 families are being forced to pay back their Christmas debts at an interest rate of up to 1,500% after being targeted by loan sharks. An estimated £29m worth of illegal loans were taken out to fund the festive season, which is the highest figure for this type of borrowing for a generation.
Housing Association Circle Anglia and The Financial Inclusion Centre estimate that the number of families lured into using loan sharks who knock on their door is growing year on year, with vulnerable families - particularly those living in housing estates - borrowing on average £300. The rise in loan sharks may be linked to the fact that so many families are unable to access basic banking services, such as opening a bank account.
Loan sharks do not have a consumer credit licence and are not authorised to lend money, which means the person taking out the loan has no protection.
There is always help available to help you get on top of your debts before they get on top of you. For free debt advice call the Consumer Credit Counselling Service on 0800 138 1111.
Here is a review of the other top money stories of the past week commencing 18 January 2010.
Monday 18th January
The recession impacts cities like Hull the hardest – A report produced by an independent think-tank, Centre for Cities, examined 64 of the UK's towns and cities and has argued that UK cities "will take years to recover from recession" and predicts a tough outlook for many UK cities and towns in the coming years. It highlighted that cities such as Hull, Burnley and Newport would find it difficult to bounce back from the recession. In Hull, there are 16 jobseekers for every job advertised and it is this high level of unemployment that economists have cited as a key reason why the city may suffer the effects of the recession longer than others. In contrast Cambridge has the lowest percentage of people claiming Job Seekers Allowance and is predicted to bounce back from the recession quickly.
Housing Association Circle Anglia and The Financial Inclusion Centre estimate that the number of families lured into using loan sharks who knock on their door is growing year on year, with vulnerable families - particularly those living in housing estates - borrowing on average £300. The rise in loan sharks may be linked to the fact that so many families are unable to access basic banking services, such as opening a bank account.
Loan sharks do not have a consumer credit licence and are not authorised to lend money, which means the person taking out the loan has no protection.
There is always help available to help you get on top of your debts before they get on top of you. For free debt advice call the Consumer Credit Counselling Service on 0800 138 1111.
Here is a review of the other top money stories of the past week commencing 18 January 2010.
Monday 18th January
The recession impacts cities like Hull the hardest – A report produced by an independent think-tank, Centre for Cities, examined 64 of the UK's towns and cities and has argued that UK cities "will take years to recover from recession" and predicts a tough outlook for many UK cities and towns in the coming years. It highlighted that cities such as Hull, Burnley and Newport would find it difficult to bounce back from the recession. In Hull, there are 16 jobseekers for every job advertised and it is this high level of unemployment that economists have cited as a key reason why the city may suffer the effects of the recession longer than others. In contrast Cambridge has the lowest percentage of people claiming Job Seekers Allowance and is predicted to bounce back from the recession quickly.
Tuesday 19th January
Inflation rate rises beyond expectations – The Office for National Statistics (ONS) has announced that the Consumer Price Index (CPI), one of the measures of inflation in the UK, rose to 2.9% in December 2009. In November the CPI was 1.9% and this 1% increase marks the largest ever increase in the annual rate between two months. This rise even surprised city analysts who had predicted inflation would reach 2.6%. Inflation measures the rate at which prices are rising and the Bank of England has a target to keep inflation at 2%.
Inflation rate rises beyond expectations – The Office for National Statistics (ONS) has announced that the Consumer Price Index (CPI), one of the measures of inflation in the UK, rose to 2.9% in December 2009. In November the CPI was 1.9% and this 1% increase marks the largest ever increase in the annual rate between two months. This rise even surprised city analysts who had predicted inflation would reach 2.6%. Inflation measures the rate at which prices are rising and the Bank of England has a target to keep inflation at 2%.
Wednesday 20th January
Unemployment falls – The latest unemployment figures from the Office for National Statistics (ONS) revealed that from September to November last year unemployment in the UK fell by 7,000. This is the first time in 18 months that the figures have shown a decrease in the number of people unemployed, and even though unemployment still stands at 2.46million, the decrease is encouraging. The latest statistics have also shown that more people are working part-time, with 7.71 million people now working part-time. The Institute for Public Policy Research has said that despite some disturbing trends, the figures still show that the labour market has proved remarkably resilient compared with previous recessions.
Unemployment falls – The latest unemployment figures from the Office for National Statistics (ONS) revealed that from September to November last year unemployment in the UK fell by 7,000. This is the first time in 18 months that the figures have shown a decrease in the number of people unemployed, and even though unemployment still stands at 2.46million, the decrease is encouraging. The latest statistics have also shown that more people are working part-time, with 7.71 million people now working part-time. The Institute for Public Policy Research has said that despite some disturbing trends, the figures still show that the labour market has proved remarkably resilient compared with previous recessions.
Thursday 21st January
Debit card spending to overtake cash in 2010 – Visa Europe, the card processor, has predicted that debit card spending will overtake cash as a method of payment this year. Debit card transactions rose by 10% last year which means that 77% of its business is now with debit cards rather than credit cards. Visa Europe suggests that the recession has meant more people have avoided building up debt on credit cards and are reluctant to pay booking fees on credit cards. Regardless of how you pay for purchases, it is vital that you keep track of your spending. The moneybasics Spendometer can help you do just that – it's a great tool that works on your mobile phone and helps you keep track of your spending whilst you're on the move. Download the Spendometer here.
Debit card spending to overtake cash in 2010 – Visa Europe, the card processor, has predicted that debit card spending will overtake cash as a method of payment this year. Debit card transactions rose by 10% last year which means that 77% of its business is now with debit cards rather than credit cards. Visa Europe suggests that the recession has meant more people have avoided building up debt on credit cards and are reluctant to pay booking fees on credit cards. Regardless of how you pay for purchases, it is vital that you keep track of your spending. The moneybasics Spendometer can help you do just that – it's a great tool that works on your mobile phone and helps you keep track of your spending whilst you're on the move. Download the Spendometer here.
| Top Money Stories January 18th 2010 –January 22nd 2010 |
