Nelleke van Helfteren, Deputy Manager at Ipswich and District CAB.
Ipswich: Payday loans used to buy essentials can result in spiralling debt
Friday, February 1, 2013
3:56 PM
BOSSES at Ipswich and District Citizens Advice Bureau (CAB) say they have seen a ten-fold increase in the number of clients receiving help with debt having taken out payday loans.
Marketed as short-term bridging loans, they have attracted criticism because of their very high interest rates.
Nelleke van Helfteren, deputy manager at Ipswich and District CAB, said: “At a time when wages and benefits are not going up we are seeing our clients taking desperate measures to ensure they have enough cash to eat and heat their homes.
“These payday loans are being used to buy food and most clients are unable to find the funds to repay the loans at the end of the term which leads to spiralling debt.
“We have also seen an increase in clients who are coming to us, not knowing where to go for help as they are having to juggle between making sure they have paid their rent, food, utilities and transport costs.”
Ms van Helfteren predicts the situation will worsen for many when changes to the welfare system take effect.
“What really concerns us here at Ipswich and District CAB is that the upcoming changes to benefits and in work tax credits have not started to bite yet and things will only get more difficult for our already vulnerable clients and families.”
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3 comments
The situation isn't helped by the soft sell advertising appearing more and more on TV It is shameful that in their greed TV companies permit it. It should be banned. There are too many people out there who fail to foresee the financial problems which will arise should they fall for these loan sharks.
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JOHN BURLS
Saturday, February 2, 2013
Miguel, where does it say this is just about the younger generation? We are seeing spiralling food and fuel costs, house prices and rents going up, the Govt reducing benefits while wages are going down. The gap in our society between rich and poor is getting wider but the implications for the poorest are frighteningly drastic.
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skrich
Friday, February 1, 2013
what this younger generation can't understand is ,,( what you can't afford ,, you can't have ,) we didn't walk around yapping on mobile phone's and driving cars ,computers and so on, sorry no sympathy for these people
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MIGUEL100
Friday, February 1, 2013