Quick cash and the debt afflicted

The economic crisis last year has brought about a proliferation of companies with access to ready and quick cash for those who need it, their selling point.  Gold buying companies, discount or hire purchase companies and shops such as cash converters, somewhat like the traditional pawn brokers, have poured million of pounds of resources into increased mainstream advertising and marketing.  Of course this marketing has one aim and that is to provide additional custom and profits.  It has worked fantastically well, with Cash Converter a particular winner, growing from 6 to 136 stores in the UK, with profits also growing by a phenomenal percentage. As a matter of fact, most companies offering a similar service have experienced similar growth.

Of course, there are some social watchdogs who are particularly concerned that companies such as those mentioned above are targeting the lowest socio-economic groups and that the morality of targeting people who are perhaps already suffering from debt issues is questionable. In reality there has, over the last year been an increased demand for access to ready cash.  The number of consumers that have been made insolvent, have experienced debt, are subject to an IVA or debt management plan or simply have a poor credit rating has rocketed and consequently the companies providing a gold buying function, hire purchase or pawn-broking services have also increased in order to cope with demand. If this has increased profits exponentially they can hardly be blamed.

Debt and credit issues haven't just been the preserve of the council estate resident over the last year.  Consumers that under normal economic conditions would not have experienced a debt management plan or a reduced credit rating have been forced to find alternative ways to 'pay the bills', put food on the table and access ready money.  Gold buying companies in particular have become very popular, offering money for gold jewelry which is then melted down, scrapped and sold on at a profit. However, if tempted to cash in your old rings or 'anchor rope' gold chain it pays to research the companies themselves as there are huge variations in the price per gam that is offered and of course, when in debt, the last thing you want to do is get a disappointing price for what, in some cases, can be your last asset.

The last type of company mentioned and probably the most difficult to quantify is those offering hire purchase.  Often it is the consumer that can't get credit elsewhere that approaches this type of provider and it is often that very same consumer that is hit with particularly high interest repayments on ordinary household items such as washing machines and fridges.  Consumers with credit or debt issues are still no doubt hugely grateful that they can get credit somewhere and to be fair it is difficult for someone with a history of defaulted repayments to approach a mainstream retailer if they need a new fridge, an essential product if you have a young family. So, once again, these companies are simply providing what has become, over the last, difficult year a necessary service.  And anyway, if they weren't doing it, you can bet your bottom dollar someone would!