Britain is once again being talked about as a place of prosperity. We are told to be relieved that the worst of the financial crisis has passed; the nation is becoming, according to David Cameron, a land of opportunity. Yet the same government that talks tough on national debt turns a blind eye to the personal debt the public have racked up on their watch. These are the people drowning in debts built up coping with the consequences of a recession in which wages froze but prices continued to rise. With little help from the government or banks, payday lending filled the gap. That leaves many people trapped, balancing multiple loans with multiple companies. They are trying to put food on their tables and heat their homes while paying off high-cost debts. Last week, a Sure Start in Walthamstow, north-east London, 30 clients served with eviction notices the day the benefit cap was introduced. Parents not even given a chance by landlords now face an overcrowded private rental sector that shuns housing benefit claimants. Several have been referred to social services as fears about debt and homelessness create unbearable stress. Benefit cuts are the tip of the iceberg of pressures pushing the public into the red. As working hours have been slashed, so a wave of part-time jobs has led to underemployment and wasted productivity. Rail and energy prices have rocketed without competition from government to drive down the costs of getting to work or keeping warm. Little wonder payday lenders now make £1m each week bleeding cash from consumers desperate to bridge the gap between a rocky jobs market and rising everyday expenses. Debt charity StepChange report 22% of payday loan clients have council tax arrears compared with 13% of all other clients, and 14% of them are behind on rent compared to 9% of all other clients. Such difficulties are music to the ears of companies for whom the more in debt a customer is the more profit they make.
Posted on: Tue, 15 Oct 2013 01:26:59 +0000
Trending Topics
Recently Viewed Topics
© 2015