The need for more affordable alternatives to high cost credit
There are too many families on tight budgets who have to turn to credit as a ‘safety net’ to meet the costs of everyday essentials.
Many of these households are having to turn to high cost credit like payday loans, doorstep loans and rent-to own stores to cover their essential living costs.
What's the problem?
The regular use of high cost credit to meet essential costs can severely damage the already tight budgets of families who are struggling to manage. This can leave them particularly vulnerable to falling into problem debt.
What are the alternatives?
This report discusses the current affordable credit alternatives available to those who need to borrow regularly to meet essential costs. It finds that there are still serious gaps in provision as the most financially vulnerable on the lowest incomes are the most likely to struggle to access affordable credit.
- There is a need for clear and coordinated action to build more accessible and affordable credit alternatives for the most financially vulnerable
- The Government should introduce or underwrite the development of a new scheme for no interest loans to help those who struggle to safely access any form of commercial credit
Download the report now for the full picture.