Advertisement
Money

High-cost loans will make Christmas a misery for Brits

Borrowers have more than double the chance of being forced to forgo presents due to lack of funds than those without, according to research from Debt Hacker

High-cost loan users are facing an austere Christmas, according to new research that discovered borrowers are twice as likely to be forced to forgo buying presents.

The Debt Hacker study, carried out by ICM Unlimited, found that financial hardship prevents a quarter of Brits from buying presents for loved ones.

But when it comes to high-cost lender customers, just over half – 52 per cent – face the same festive season quandary. In fact, 44 per cent are left with no option but to miss out on meeting up with family altogether because they simply cannot afford to go.

Financial difficulties also stand in the way of the festive feasts with high-cost loans making it more than twice as likely for borrowers to skip a meal while a quarter will be reliant on foodbanks compared to just seven per cent without a loan.

The stigma around problem debt can also play a role at Christmas, leading to isolation and loneliness with one in five people who’ve taken out a high-cost loan have no one to talk to about their financial woes. Add to it the pressure to create the perfect Christmas – again double the amount of high-cost loan users feel pushed to spend more than they can afford – and life on the bread line is increasingly tough over the holidays.

Advertisement
Advertisement

This situation would be shocking at any time of year, but at Christmas it’s simply tragic

Debt Hacker is an online campaign that aims to help borrowers fight back against exploitative lending by using free tools to make a complaint and recoup interest and fees from mis-sold loans. Importantly, these loans are also removed from the borrower’s credit file, ensuring that they do not get trapped in a never-ending spiral of debt and poverty.

“This situation would be shocking at any time of year, but at Christmas it’s simply tragic,” said Debt Hacker founder Alan Campbell. “We don’t want anyone to find themselves in this lonely position this festive season. If you’re struggling, talk to someone – be that friends, family, debt advice services – whatever you do, don’t feel pressure to spend more than you can afford.”

Advertisement

Every copy counts this Christmas

Your local vendor is at the sharp end of the cost-of-living crisis this Christmas. Prices of energy and food are rising rapidly. As is the cost of rent. All at their highest rate in 40 years. Vendors are amongst the most vulnerable people affected. Support our vendors to earn as much as they can and give them a fighting chance this Christmas.

Recommended for you

Read All
How to avoid online scams this Black Friday and Cyber Monday
Cyber Monday

How to avoid online scams this Black Friday and Cyber Monday

Cost of living crisis one year on: 'You don’t need to figure it out alone'
cost of living crisis

Cost of living crisis one year on: 'You don’t need to figure it out alone'

‘We change lives through better vision’ – Specsavers offers free eyecare and glasses to Big Issue vendors
Sponsored content

‘We change lives through better vision’ – Specsavers offers free eyecare and glasses to Big Issue vendors

Benefits calculator: from universal credit to council tax rebate, here’s what you’re entitled to
Benefits

Benefits calculator: from universal credit to council tax rebate, here’s what you’re entitled to

Most Popular

Read All
Here's when and where nurses are going on strike
1.

Here's when and where nurses are going on strike

Pattie Boyd: 'I was with The Beatles and everything was fabulous'
2.

Pattie Boyd: 'I was with The Beatles and everything was fabulous'

Here's when people will get the additional cost of living payment
3.

Here's when people will get the additional cost of living payment

Why do people hate Matt Hancock? Oh, let us count the ways
4.

Why do people hate Matt Hancock? Oh, let us count the ways