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Shopping for Small Cabinets
Since the start of the pandemic, more than 11 million people have built up £25bn in arrears and debt. And illegal lenders are targeting those who can’t access mainstream credit
Michelle, 48, a single mother of three, was stressed, vulnerable and broke. She had recently moved to a new area in Tyne and Wear after escaping an abusive relationship, and when her working hours were cut back at the beginning of the pandemic, money became tight. “It was soul-destroying,” she says. Desperate, and in need of cash for her son’s birthday, she was delighted when another mother at her child’s school offered to lend her £50. The woman said she knew what it was like to need a little extra and that she could pay her back next month.
That £50 turned into thousands changing hands, in cash, over several months, with no records kept. “She made it her business to know exactly what days money went in my bank,” says Michelle (whose name has been changed). Forced to pay “double bubble” interest, (the amount of the original loan, plus the same again on top), Michelle soon found the debt spiralling out of control and loan sharks pursuing her.
