Loan sharks - BBC Essex Wednesday 17th 6pm
Just finished off planning for tonight's show on BBC Essex 6pm with John Hayes, this week's topic will be on 'loan sharks' and how they are making a comeback with a vengeance.
The hidden cost of the unemployed
The first thing that the 271,000 people who have been made unemployed in the last three months must do is deal with their sudden debt problem. Many of them will have large mortgages, overstretched credit cards, overdrafts and cars on hire purchase. And without an income they won't be able to keep up with the payments.
The newly unemployed who lack sizable savings need to avoid burying the heads in the sand and honestly confront the situation. Walking into a new job straight away is unlikely so it's important
for them to deal with their debts before they grow any larger. They need to speak to their lenders immediately and get help from the Citizens Advice Bureau. Those that don't are sadly those that tend to end up being made bankrupt and losing their homes.
With 3 million forecast by the end of the year there is real concern about how theses individuals will motivate themselves into getting back to work.
I know from experience with my clients that some will drop into depression or turn to alcohol, gambling or even crime in an attempt to solve their debt problems.
Many will not address their debt issues for well over a year, sometimes two or three, from when they first arose and for some they will just freefall further into debt.
Creditors also need to be more understanding and sympathetic towards borrowers that find themselves suddenly out of work.
Debt can consume your life. These people need support from their families, friends and creditors both their emotions and finances. They also need to have clear goals on how they can manage their debts. The best way to start is to draw up a budget form prioritise which creditors needs to be paid first, such as mortgage and rent followed by utilities.
It is a clear fact that once you get control of your debts you get back control of your life.
