Christmas Creditors Caroling

From the Guardian, in the UK, is warning about consumers about "doorstep lenders"

"Social landlords like housing associations can really make a difference, by helping financially excluded residents manage their money around Christmas and offer a real alternative to doorstep loans at shocking interest rates."

What are "Social landlords"?

"Doorstep lenders are set to collect £37m in interest payments from some of the UK's poorest families who borrow money to cover the cost of Christmas, the Housing Corporation warned today.

I wonder if this is legal in the UK. It seems the author of this article is not stating otherwise.

The group said the average parent planned to spend £137 on presents for their children this year, and people who were financially excluded would be forced to borrow this money from doorstep lenders at interest rates of up to 600%.

It said the prospects were even worse for those forced to turn to illegal loan sharks, some of whom charge 8,000% interest.

8,000% is certainly a motivation to loan money. And I suspect credit card companies see this too. That is a very healthy profit.

In a bid to help tackle the problem, the Housing Corporation has launched a money access programme to encourage housing associations and other social landlords to help their financially excluded residents gain access to affordable credit and other financial services.

These include offering face-to-face debt advice; setting up credit unions and helping people claim benefits and access basic bank accounts.

Education, is certainly a good thing.

"At Christmas, every parent is under the same pressure to make it special for their children," said Jon Rouse, chief executive of the Housing Corporation. "But if they borrow from doorstep lenders, they risk the roof over their heads in return for a day's happiness.

I suspect this is going on, often, in Los Angeles, especially among the poorest, least educated, those with out of control addictions, and illegal aliens.

And once people get into debt, they could be still be paying it off this time next year, according to research from debt advice firm, One Advice.

The group estimates 2.4 million people are still paying off debts they ran up last Christmas. At the same time a further 1.7 million people took between six and 10 months to clear their festive debts, while nearly 687,000 people only finished paying them off in November, the research showed.

People aged between 45 and 54 were most likely to still be paying off last Christmas's debt, with nearly one in 10 people in this age group not yet back in the black.

Around 8% of people in the south-east are also still repaying last year's spending, compared with just 4% of people in the Midlands and East Anglia.

I have seen a couple documentaries on the car loan business for used cars, in the UK. It was astonishing to see how they operate. They were the equivlent of loan shark businesses.

"The scale of the debt problem facing this country is very alarming, and it is generally fuelled by Christmas," said Chris Holmes, chief executive of One Advice.

Mr Holmes said people should try to enjoy the festive season without leaving themselves with a huge financial hangover in the New Year.

"Those that do have serious financial problems should seek professional advice as soon as possible because the longer they leave it, the worse it becomes," he said.

I wonder how this is connected with the housing bubble in the UK.