Is Fair Finance a Myth for the UK’s Entrepreneurs/People in Need Of Credit ?

The financial collapse of 2008 saw the UK’s bank-lending system suffer a catastrophic demise, manifesting with the vast majority of consumer lending cut off at source. The era of austerity had well and truly been awakened for the British public, and ten years on, the Autumn Budget rhetoric leads us to believe the dark days are finally drawing to an end.

However, according to a national study by loan comparison site FairMoney, the situation has evolved, but is still riddled with sluggish lending and cowboy tactics – perpetuating a situation deemed no more of an improvement than that of a decade ago.

At its peak, the payday market was worth £2.5b in 2013. Testament to its maligned reputation, now, it is only worth £220m. That said, many are still at the mercy of extortionate interest rates, and loose due diligence.  It seems the nation of hard-workers and grafters Hammond dedicated last month’s financial statement to, are the exact demographics left out in the cold.

FairMoney’s research has shown that over four in 10 (43%) of people with loans only borrow an average amount of up to £500, with 41% paying an interest rate in excess of 25%. A quarter (24%) of Brits only borrow up to £10000, while 5% borrow as little as £100.

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