Guarantor Lender Urges Borrowers to Look Beyond Payday

BOURNMOUTH, England, August 13, 2012 /PRNewswire/ --

The Consumer Credit Counselling Service (CCCS) has announced that the pit-holes of payday loans are forcing jobless Britons into unmanageable debt.

With no regulation in place to stop a lender offering a short-term, high-interest loan to the unemployed without affordability checks, many borrowers are left in a downward spiral of debt, unable to repay the huge interest rates applied to payday loans.

As banks continue to clamp down on lending, payday loans can seem the only option available in times of financial need, but now consumers need to be even more cautious about the financial products they choose and understand there are other options available to them.

Amigo Loans founder and CEO, James Benamor, says:
" The threat of payday loans for millions of people continues to grow. Irresponsible lenders are failing to consult borrowers adequately. With many trustworthy people locked out of the banking system, payday loans are often thought to be the only option available. But without stringent affordability checks, these lenders are acting irresponsibly. Consumers need to be aware there are cheaper and safer options beyond payday."

While there are often genuine reasons why people need to borrow quickly, using payday loans could cause serious problems in the future for millions of consumers. Amigo Loans, based on the guarantor loans model, lends flexibly at 100th of the APR of some payday lenders, without relying on the credit scoring system. All customers speak to a loan adviser who carries out a detailed affordability consultation.

For more information on Amigo Loans visit http://www.amigoloans.co.uk. Alternatively you can visit http://en.wikipedia.org/wiki/Amigo_Loans for information on the company's history.

To view Amigo Loans' interest rate alongside other guarantor lenders, you can use this comparison table http://www.money.co.uk/loans/guarantor-loans.htm

ABOUT AMIGO LOANS

• Amigo Loans offer complete flexibility - with daily interest at a 100th of the APR of payday.
• Although Amigo Loans are always granted over a term - such as 12 months - there are no fees and interest is charged daily, meaning they can be used in the same way as a payday loan. Borrowers who repay after 30 days will only pay 30 days' interest at 49.9% compared to Wonga's typical APR of 4,214%.
• Amigo Loans says guarantor loans are a more responsible form of borrowing because of the social aspect. The guarantor (typically a family member) not only validates that the borrower can repay, but also that borrowing is in the applicant's best interests.
• Amigo Loans is the UK's largest guarantor loans company, offering medium term loans up to £5,000 over a one to five year period.
• 87.4% of 509 reviewers on the independent review site, Review Centre, would recommend Amigo Loans: 

SOURCE Amigo Loans