An investigation carried out by Suffolk County Council has revealed that the British public, in particular those living in rural communities, are increasingly turning to loan sharks for personal loans following the closure of Post Offices and local banks.
<p>The limited access to mainstream financial services and the loss of choice in isolated areas have driven many to borrow from unscrupulous lenders, the council's research shows. <br /><br />Groups most at risk include the elderly and students, who often find their application for credit rejected by larger lenders. A lack of personal finance education has been identified as a key factor in the cause of these problems. <br /><br />Cited in EDP24.co.uk, the Citizens Advice Bureau said: Problems of financial literacy, lack of understanding and the reluctance of independent financial advisers to give advice to the lower income groups causes problems.<br /><br />The report warned for a solution as research indicated that debt-related stress could potentially lead to a lower performance or absence at work, or even criminality.</p>