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3 Debt costs
Figure 7 A cartoon of a suspicious looking character
Box 5 Credit for those on low incomes
A Citizens Advice Bureau in Hampshire reported that their clients, a couple with two
children, had taken out a £500 loan to repay their rent arrears which were the subject of
possession proceedings. The total cost of the loan was £800 in total, with a 60 per cent rate
of interest.
A West of Scotland Citizens Advice Bureau reported a client couple who have over £16,000
in debts. The couple had two recent loans from doorstep providers, both granted within two
months of each other. The first loan was for £500, with a £275 interest charge. The second
loan was for £100 with a £55 interest charge. These loans were being used to help meet the
income shortfall on existing credit agreements.
(Citizens Advice, 2003, pp. 27, 28)
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