Debt solutions an alternative to doorstep lending

People dealing with debt problems should seek debt solutions rather than resort to borrowing from door-step lenders.

The advice comes as the Office of Fair Trading (OFT) announces it wants to help British consumers struggling with debt to avoid doorstep lenders.

The UK regulator has thus far denied licenses to around 100 people offering loans to members of the public in the last 18 months.

It has issued a warning this week to 50 more lenders and insisted they improve the nature of their services for the consumer.

Each of them has been ordered to produce documentation by the next quarter showing they'll fall in line with the Consumer Credit Act.

Debt management expert Kevin Still says, "Resorting to very high interest credit can lead to a debt spiral and make existing debt problems worse.

We would recommend that anyone in serious financial difficulty should seek professional debt advice from a licensed debt advisor."

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