PRN: As Payday Loans Sky Rocket During the Recession Debt Line Offers a Way Out
As Payday Loans Sky Rocket During the Recession Debt Line Offers a Way Out
BOURNEMOUTH, England, July 26, 2012 /PRNewswire/ --
Every month Debt Line helps close to 20,000 people with theÂ Â debt managementÂ Â of payday loans
The number of payday loans - short-term, high interest loans - has increased exponentially since the start of the recession. Since 2009 the number of people approaching debt advice charity the Consumer Credit Counselling Service in regards to payday loans has increased six fold. Last year alone the number of people requesting payday loan advice from CCCS jumped by almost 10,000 from 7,841 in 2010 to 17,414 in 2011.
Payday loans are having a disproportionate affect on the poor and families on low incomes. They are the only way out for many individuals that lack collateral such as a home with which to secure a bank or building society loan but need cash to tide them over until payday.
Payday loans incur exorbitantly high interest rates - some are up to 4,000% per annum. These interest rates are unsustainable and along with poor customer service and a system which does all but encourage people to get into more debt and thus pay these huge levels of interest, many people fall through the cracks and fall foul of payday loan creditors.
Debt Line is a cost effective debt management service that offers a way out. Its main aim is to get people out of debt as quickly as possible. Its first step is to consolidate debt into one affordable monthly payment. It creates a debt management plan for each of its clients and an online account to help people manage their debts 24/7. Additionally, Debt Line deals with rude, pushy and hassling payday creditors on behalf of its clients. Its staff has years of experience dealing with creditors.
Debt Line does charge a fee, but unlike payday loan creditors, it is open and forthcoming with information over fees and charges. It has its clients' best interests at heart, so it's no wonder it helps close to 20,000 debtors every month.