Think Money

Think Money

October 13, 2010 10:01 ET

Long-term debt problems need long-term solutions

LONDON, UNITED KINGDOM--(Marketwire - Oct. 13, 2010) - Financial solutions company Think Money (http://www.thinkmoney.com/) has advised borrowers who frequently find themselves struggling to keep up with their repayments to contact a debt adviser as soon as they can to discuss appropriate long-term options for tackling their debts.

The comments come after a report in The Metro found that the industry for pawnbrokers and 'payday loans' is now worth £2bn a year, as struggling borrowers find themselves in increasingly desperate need of financial assistance.

Think Money said that payday loans and pawnbrokers can be perfectly viable options for people who need easy access to money in the short term, but this type of borrowing is unlikely to be suitable for more serious or long-term problems with debt.

A debt management expert at Think Money commented:

"Sometimes, traditional forms of credit such as loans and credit cards are less readily available and so many people turn to payday lenders for quick and easy access to credit.

"There is nothing wrong with utilising these sources of finance if they simply need to borrow money for a short period. If someone finds themselves with an unexpected bill, for example, but knows it's only a one-off problem, then a payday lender could offer a lifeline.

"On the other hand, payday loans won't help people with an underlying financial problem. For people who frequently find themselves falling short, a debt solution that helps in the long term is much more appropriate.

"For example, a debt management plan (http://www.thinkmoney.com/debt/debt-management/) could help people reduce unmanageable debt repayments to an affordable level, ensuring that all their costs can be met.

"Anybody uncertain of their options or worried about their ability to meet their current expenses should talk to a debt adviser without delay."

Notes to Editors

Think Money is one of the UK's leading financial solutions providers, delivering a comprehensive range of debt, loan, insurance and banking solutions.

Think Money defines its mission as 'To educate, rehabilitate and advise on all aspects of financial management'.

For more information, visit the Think Money website at http://www.thinkmoney.com/.

Think Money debt management section: http://www.thinkmoney.com/debt/debt-management/

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