The large amount of spending by consumers over Christmas has led to high numbers of people taking out payday loans.
As a result, some people are struggling to repay these loans throughout January.
The guarantee of instant money, especially over the festive period, has been alluring to many. But it has meant that more and more people have found themselves in debt and need help in order to pay back their high interest loans.
Humber Debt Solutions, who are based on Holderness Road, have a high street Debt Advice Centre so that people who are struggling with debt can speak to someone face-to-face.
They also have a Debt Advice Line 0800 915 5371 if people prefer to call them and obtain advice over the telephone.
They are currently helping customers with more than £2m of debt and the company offers the capability for those in debt to come and speak to an experienced advisor without an appointment.
The company also offers a debt advice walk-in centre from Monday to Friday (9am to 5pm) and help with debt management plans, IVA’s, personal debt advice and more.
People who are struggling with debt on their own and do not know where to turn, or are too embarrassed to talk to anyone, are encouraged to contact them for advice.
Robert Croll, the manager of Humber Debt Solutions, explained: “While the ability to obtain money so quickly and easily has helped many in the short term, the long term implications of these loans can be damaging. Problems arise when it comes to paying the loans back.
“Almost all advice inquiries we have had so far in January are from customers with at least one payday loan taken out to help with Christmas. We are in fact helping a customer who has 17 payday loans.
“Many do not know how to manage these debts and instead of seeking advice they tend to take out another payday loan to pay back the original one and end up in a debt spiral. This affects their ability to pay other priority debts such as rent, mortgage, council tax, utilities and food.
“Payday loan companies such as Wonga are offering interest rates as high as 5,853 per cent APR, which means people are paying back a substantial amount more than they are borrowing, leading to high amounts of debt.
“The highest interest rate we have seen on a payday loan is 73,547.7 per cent APR.”
According to the Debt Advisory Centre, in 2013, 37 per cent of its new clients owe money to pay day lenders, a figure that has doubled since 2011.
Humber Debt Solutions pride itself on having vast knowledge and expertise in debt solutions and offers appropriate advice based on personal circumstances, with their aim being to get people out of debt for good.
Debt Advisor Kerry Dean said “We can help you if you have payday loan debts or other unsecured debts that you are struggling to pay. Don’t struggle alone and do not ignore the problem, things can quickly escalate with payday loan debts and what was once a £200 debt can quickly become more than £1,000. Don’t be afraid to call us.”
If you are in debt and need to talk to someone visit Humber Debt Solutions at 362 Holderness Road, or call them on 01482 585017.