Be safe

Two major causes of debt are:

• identity theft and
• borrowing from doorstep lenders, or illegal loan sharks, who charge such high interest that it could take a lifetime to repay your debt.

Identity theft

Identity theft is a crime. Someone steals and uses someone else’s personal information, like their name and banking passwords, and they then use this information, usually to get money.

Here are some frightening facts about identity theft.

• Someone uses a credit card with stolen details every eight seconds.
• Experts report that it can take a victim from six months to two years to clear their name after their details have been stolen.
• A quarter of adults have been a victim of identity theft, or know someone else who has been.

There are many simple things you can do to protect yourself against someone fraudulently using your personal information.

• Read our tips to prevent identity theft.

Loan sharks and high-interest loans

People on low incomes, who cannot get loans from high-street lenders, often feel they have to use doorstep lenders and loan sharks. But the interest payments demanded by these lenders are so high that borrowers can be in debt for life. They may also be harassed or threatened if they get behind in payments.

But you don’t have to use doorstep lenders or loan sharks. You can now get a low-interest loan you can afford through not-for-profit lenders, like credit unions.

• Read more about the dangers of loan sharks and how to report suspected illegal lenders to your local trading standards office on the DirectGov website.
• Find out more about how you can get an affordable loan.