Home Collected Credit, also known as Doorstep Lending or Home Credit, has been a staple financial service in the UK for many years. Despite its long-standing history and regulated status, numerous myths and misconceptions still surround this form of lending. Many people across the UK continue to need small sums to help manage consumption and meet unexpected expenses.
According to LexisNexis Risk Solutions, short-term loan application volumes in the UK doubled (a 90% rise) between April and June 2022, as the cost of living crisis forced many people to seek high-interest loans. The study, which analysed data from two major credit reference agencies and over 30 additional public and commercial sources, discovered that the number of people taking out short-term loans to pay off other debts has increased by more than 70%.
People’s usual borrowing amounts have also steadily increased. In early 2021, the most typical loan amounts requested were between £250 and £499. By December 2021, £500 to £999 was the most common value requested (a 31% increase), and by April 2022, £1,000 to £4,999 was the most frequently applied.
Essex-based home credit lender Cockle Finance, a third-generation, family-owned lender providing short-term loans for over 50 years, has been actively working to dispel some commonly held misconceptions about short-term lenders and the people they serve.
