Feb
15
2011
Umbrella company contractors told 'beware interest rates'
Posted by Daniel Frost
Contractors with an umbrella company have been told to be aware of interest rates if taking out loans or credit cards.
Richard Sorsky, money advice co-ordinator at the UK Insolvency Helpline, believes that there are too many consumers who are failing to understand the interest element of these money options.
By discarding this information, company umbrella contractors could find themselves not only having to pay back the money they owed, but between 18 and 29 per cent APR (annual percentage rate) too.
However, Mr Sorsky noted: "Although it's well stated, people are always with the attitude, 'I don't care about the interest rate because I always pay my debt off every month anyway'."
The advice comes after it was recently found by unbiased.co.uk that the first 45 days of 2011 will be spent by debt-ridden Brits paying off just the interest on their debts, while the amount owed will still be the same.
Contractors with an umbrella company have been told to be aware of interest rates if taking out loans or credit cards.
Richard Sorsky, money advice co-ordinator at the UK Insolvency Helpline, believes that there are too many consumers who are failing to understand the interest element of these money options.
By discarding this information, company umbrella contractors could find themselves not only having to pay back the money they owed, but between 18 and 29 per cent APR (annual percentage rate) too.
However, Mr Sorsky noted: "Although it's well stated, people are always with the attitude, 'I don't care about the interest rate because I always pay my debt off every month anyway'."
The advice comes after it was recently found by unbiased.co.uk that the first 45 days of 2011 will be spent by debt-ridden Brits paying off just the interest on their debts, while the amount owed will still be the same.