The worth of informal loans nearly billions

According to a new report, today people are owing more than a sum of 2.6 billion pounds as far as IOU's from colleagues, friends and family is concerned. A research in this regard was done by O2 Money which showed that in the year 2011 around half of the adults had lend money to the other such as work colleagues, children as well as friends.

Although normally the span of repayment is 60 days but every one in two people has still not been able to get their money. Most of them has given money to the people who had said they had shortage of cash in hand or who were not carrying their credit card at that point of time. They were not able to ask about their money back as they felt quite awkward doing so.

The citizens of Wales had given least amount of money in the form of loans which on an average was 71 pounds in the year 2011 but these were the only people who had settled this money at the quickest which was 36 days. The study said that amount around 2000 adults, the people at the age of 55 years were the most generous ones.

Payday Loan Lenders In Agreement of New Rules

The lenders of payday loans are in agreement with new rules which have been introduced in order to help out borrowers who are stuck in the troubles of debts.

Norman Lamb, Business Minister had to say that till date in all 4 trading association that is a representative of around 90 percent of the payday loan lending as well as short-term loans lending industry has put into their signature on the new charter for customers. 

According to the terms of this agreement, if the borrower is not able to pay back the borrowed money in 60 days above the repayment date then the payday lenders will not be charging any rate of interest from him in future. Those borrowers who come in agreement to the payment plan will get their charges frozen.

This agreement will come into effect on July 25^th. It was been signed by the British Cheque & Credit Association, the Consumer Finance Association, the Finance & Leasing Association, as well as the Consumer Credit Trade Association.

Lamb said that is agreement is a positive step but it is required that more additions have to be done into it. More has to be done in the case of continuous payment authority.