Loan sharks and savings

Steer clear of sharks

Your cooker has stopped working, a special occasion is coming up and you don't have the money to pay for both. No bank will give you a loan and you can't wait for the weeks it might take to get money from another loan company.

What do you do?

Unfortunately, many people turn to a loan shark, which is likely to lead to more trouble than a broken cooker. It could mean a lifetime of looking over your shoulder - or even broken bones.

All loan sharks are illegal. They cannot take you to court to recover the money you owe them, and as a result often resort to threats and violence.
Reports include people being dragged round the streets by a car, hit with baseball bats, cut with a machete and severe beatings. Unfortunately some people take out loans and end up unable to pay. Loan sharks don't take your personal circumstances into account or have any sympathy-they just want to get paid.

Loan sharks also charge huge amounts of interest. This means that you will pay back MUCH more than you originally borrowed, which could leave you financially worse off, and unable to keep up with existing bills.

Don't let the credit crunch push you to borrow from a loan shark. Brent Housing Partnership can help you manage your debt. Contact us to speak to a welfare benefits officer who can help you maximise your income. We can also arrange an appointment for you with the Citizens Advice Bureau who can help you manage your debt.

You can find out further information about stopping loan sharks from the Directgov website.

Don't lose your home

We understand that special occasions like birthdays, Christmas or religious festivals put a great strain on the family budget. There is enormous pressure on everyone to spend a lot on presents and entertaining, and this can be particularly difficult if you have a family.

Be very careful of spending money you cannot afford to, running up credit debt and making agreements with loan sharks; you could fall behind on essential bills. Remember that your rent/ mortgage and energy bills are priority bills. Here are some helpful hints and tips for saving and managing debt.

Saving for special occasions

• shop around for bargains
• set yourself a budget for presents and entertaining and stick to it
• set aside an affordable weekly or monthly amount over the year for special occasions
• get paid interest - save in a bank or building society
• get a cash ISA and build up tax-free savings
• spread the cost by joining a supermarket saving scheme.

How to handle debt

• don't ignore the problem; it won't go away and the longer you leave it,
  the worse it will get
• don't just borrow money to pay off your debts- get advice first
• contact all the companies you are in debt to and make arrangements
  to pay a reduced amount that you can actually afford
• make sure you tackle your priority debts first, for example, rent, gas and electricity.

BHP is here to help. Contact us to speak to a welfare benefits officer who can help you maximise your income, alternatively, we can arrange an appointment for you with the Citizens Advice Bureau who can help you manage your debt.