A charity warns up to three million people could be left drowning in debt as a result of the pandemic. StepChange also fears hard-up Brits could turn to loans with eye-watering interest rates of almost 2,000 per cent to fund the festive season as they grapple with money woes.
Dot Dot Loans offers between £200 and £4,000 with a maximum yearly interest rate of 1,959 per cent. Rival Choose Wisely offers loans of between £300 and £5,000 but borrowers could face APR rates of 1,571 per cent.
Lender Oakham also charges up to 1,421 per cent. And at Bingo Loans people can get between £50 and £1,500 but face a maximum rate of 1,261 per cent per year.