Last week the news was filled with spin off stories based on a report published by Insolvency Service on 2nd November. The report covered all areas of business and consumer finances from high street to corporate bodies and consumers, showing the annual figures and few reasons for any of us to cheer.
Christmas is nearing and many families are facing tough financial times, trying to accommodate recent raise in heating bills, regular household bills and making sure that family will have a fun festive season. You should only resort to turning to payday loan lenders as a last option and if you know that you can comfortably afford to repay the loan at the end of the term. Unfortunately many families end up struggling and opting for various loans including payday loans to get by this Christmas. It is difficult for many of us and here are few suggestions how to avoid overspending and starting the New Year without spiralling debt.
Irresponsible lenders who are operating within the payday loan industry are tarnishing the reputation of those companies who lend responsibly and act with a well developed moral compass, and remain within the complex network of legislative compliance and industry codes of conduct. Millions of people are now using payday loans and yes, the APR can seem high but when people make this point they are not explaining the whole picture.
The National Farmers Union (NFU) have reported that English wheat yields are down by 14% and that the level of productivity is almost as low as was seen in the 1980′s. If we put this into context alongside a very wet British summer, drought conditions in the Americas and a heat wave in eastern Europe and parts of Asia this year, the end result is going to be a marked increase in the costs of basic food stuffs.
Energy providers British Gas, npower, SSE and Scottish Power have recently announced further price increases, just in time for winter. Prices are set to increase by an average of around 7% and 2.3 million households whose power is supplied by Scottish Power will increase. Scottish Power’s 700,000 customers who are on capped or fixed rate deals will not see their prices rise this time around.
The cost of living is increasing. This is partly driven by increasing energy, utility prices and Council Tax. Wage freezes, redundancies and rising unemployment are also making it more difficult for people to cope. So, household bills can sometimes be the most difficult to manage and this situation takes a turn for the worse for many families during winter months when raising heating bills take their toll.
In July 2012 the trade associations which represent payday loan and short term loan lenders (BCCA, CCTA, CFA, FLA) launched the Good Practice Customer Charter and Addendum. The Charter was driven by the Department for Business Innovation and Skills (BIS) in consultation with trade associations, the OFT and various consumer groups.