Redcar’s Labour candidate Anna Turley today (18th April 2014) spoke out about the growing personal debt crisis gripping Britain as research shows 2 in 5 Brits struggle to make it to payday and that millions are now taking out payday loans and debt management plans to cope with the cost of living and debt repayment. In the North East region it was 56% who said they were in personal financial difficulty.
Speaking about the issue Anna said:
“Whilst George Osborne may be celebrating, the people of Redcar and Teesside are paying out of their own pockets for this Government’s so called recovery – with many getting into debt or spending all their rainy day money as a result. This new research from R3 shows 56% of us here often struggle to get to payday and that this is due to household bills like energy or rent, or repaying credit cards and payday loans.
“Many people have no savings and if interest rates rise or rents continue to go up we could see millions of families out on the street or becoming so called zombie debtors- paying just the interest not the capital on their debts – as they stuck in a spiral of debt from which they can never escape.
“That’s why it’s vital that we tackle the cowboys making money out of providing debt management advice and the legal loan sharks still profiting from these pressures. As well as action on our energy bills, I’m backing plans to get tough on debt management companies, to make sure people have access to good debt advice and alternative affordable finance.
“Anyone here in Teesside worried about their debts or worried about debt in our community should get in touch to be part of our work tackling these issues- the Government may think they can ignore these problems but we are determined to tackle the zombies, sharks and cowboys head on!”
Anna called on her Lib Dem opponent in Redcar to support Labour’s amendments to the Consumer Rights Bill in Parliament to address the fees that debt management companies charge as well as pushing for a levy on payday lenders to pay for debt advice provision.