Perennial warning on 'payday' loans

As a survey published by a group of insolvency experts highlights the possibility of millions of Britons taking out high interest 'payday' loans over the coming six months, Perennial - horticulture's trade charity - is keen to remind the industry of the help and advice it can provide on debt and money management.

Richard Capewell, the charity's Chief Executive said: "At this time of year many people in horticulture find themselves on shorter hours and with the added pressures of Christmas expenditure, the temptation to turn to online and doorstep lenders is all too great. Over recent months our debt advisers have seen a marked increase in the numbers of people facing financial troubles and we would ask anyone who is facing such difficulties to get in touch with us first - it is so much easier for us to provide immediate help at this stage rather than when an individual has compounded their difficulties by taking out a high interest loan."

The report from R3 cites interest rates of up to 4,000%, and instances of borrowers duped into extending the payment period in order to rack up charges and interest.

Sandra Owens, Perennial's Senior Debt Adviser offers the following self-help advice: "If you find yourself on short hours, check that you are receiving all the tax credits and benefits you are entitled to - go to the DWP website www.direct.gov.uk/en/MoneyTaxAndBenefits or contact us. Get advice before taking out a loan, there may be other options available to you that won't increase the amount of debt you have. Find out how much that loan will really cost by using a loan calculator such as the one on the Money Advice Service website www.moneyadviceservice.org.uk . And don't forget that should you fail to repay the loan within the specified time the loan will spiral very quickly,"

Perennial's debt advice team can be contacted by email, debtadvice@perennial.org.uk by telephone on 0800 2 944 244 or via their website www.perennial.org.uk . Perennial is also able to supply information leaflets and posters for staff rooms, contact the charity's marketing department on 0845 679 0636 or email marketing@perennial.org.uk.