Jan
14
2011
Umbrella company contractors told of 'ideal borrowing solutions'
Posted by John Crawley
Company umbrella contractors have been told of the reasons why they should avoid seeking out high interest rate lenders.
Tim Nichols, spokesperson for Child Poverty Action Group, noted that many people choose one of these borrowers because of desperation more than attractive deals which they may offer.
However, he also pointed out to those with umbrella companies that joining a lender of this kind could lead them into "spiralling debt for years", as well as being a "rip-off" in his opinion.
Instead, Mr Nichols advised: "Families should always look first to sources like the social fund and crisis loans. If they are behind on household bills, they should talk to their utility provider and explain the situation."
His comments follow on from a recent study by Skipton Building Society, which found that one in three Brits struggle to put money aside, while 25 per cent feel there are not saving enough.
Company umbrella contractors have been told of the reasons why they should avoid seeking out high interest rate lenders.
Tim Nichols, spokesperson for Child Poverty Action Group, noted that many people choose one of these borrowers because of desperation more than attractive deals which they may offer.
However, he also pointed out to those with umbrella companies that joining a lender of this kind could lead them into "spiralling debt for years", as well as being a "rip-off" in his opinion.
Instead, Mr Nichols advised: "Families should always look first to sources like the social fund and crisis loans. If they are behind on household bills, they should talk to their utility provider and explain the situation."
His comments follow on from a recent study by Skipton Building Society, which found that one in three Brits struggle to put money aside, while 25 per cent feel there are not saving enough.