According to the data in a recent report there are many low income people in the UK who are suffering severe financial problems and debts due to the widespread cutbacks that have been put into place by the coalition government. It was claimed that many people are in so much financial trouble due to cutbacks that they are being forced to turn to legal loan sharks in order to keep their heads above water financially, which is affecting their debt levels.
The government has made many cutbacks since coming into power, many of which took place from the start of this year. However, officials from the left wing pressure group Compass have said that many of these cutbacks have had a severe impact on the finances of many low income households, using data from a survey of over 250 social housing tenants as evidence of the hardship that many were facing.
The data showed that amongst those that were polled the average household income was less than £8000 per year. However, a quarter of this was going on debt payments, with the average debt amongst those polled coming in at £1200. With the cost of living and bills soaring, having to pay out such a large proportion of such a small income on debt was leaving many struggling to make ends meet, forcing them towards borrowing more money from legal loan sharks.
Tags: average debt, Loan shark, left wing, debt payments, Business FinanceOne official from the group said: “What makes this particularly alarming is that the Government is banking on personal debt increasing as a way to reduce the deficit but 28 per cent of those we surveyed are finding debts increasingly unmanageable. The Government’s economic plan could be driving borrowers into the arms of legal loan sharks which is a particularly unpleasant experience.”
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