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Over half of people 'turning to doorstep lending'
New figures from the Office of Fair Trading have revealed that around one in two borrowers in the UK are relying on unsecured loans to get by.
The study found that 52 per cent of people are dependent on so-called doorstep lending, which often sees people granted small short-term loans with high interest payments.
Frances Walker, head of media and public affairs at the Consumer Credit Counselling Service, said the high proportion of people using the services was down to the economic climate and added that some borrowers are suited to such arrangements.
"Although the APRs appear high, they suit some people with certain budgets because they manage on very tight budgets and they know how much they must pay off each week," she explained.
She added that the danger of abolishing such lending is that people would have to turn to illegal means to secure money.
Figures from Credit Action recently revealed that total UK personal debt at the end of October stood at £1,458 billion.