New website aims to help payday loan victims

 

A 25-year-old from Essex is hoping that his new website will offer a solution for people stuck in the vicious circle of payday lending. That's when they can't afford to repay their loan on time and are forced to take out another loan to cover the spiralling interest and fees.

Daniel Hall has seen the problems that people in debt can fall into, and hopes his idea will make a difference. His solution is simple: put people with payday loan trouble – who need £100 or so to clear their debt – in touch with others who are prepared to pay for a service, such as some gardening or decorating.

"The services offered can be anything from walking someone's dogs for a month to painting someone's house," Mr Hall explains. "The service can be anything that a debtor feels they can offer."

He wants debtors and people prepared to pay others for services to sign up at his Quickmoneyalternative.com website, launched this week. "The site works in a similar way to a payday loan in that people say how much money they need and when they need it by," he says. "But the crucial difference is that the debtor offers services in exchange for the money rather than getting themselves further in to debt.

"And using the site is free so debtors can't get themselves into further debt – they can only help themselves get out of financial trouble." The site is also free to use for those looking for a handyman or someone to walk their dog, although Mr Hall offers to have a legally binding contract drawn up for £30.

"That's just to ensure that the debtor provides the service for which they have been paid, but it's not a requirement of using the site."

He hopes the site "will help people get back on their feet". He points out: "There are many people experiencing debt for the first time in their lives due to the current recession and hopefully Quickmoneyalternative can be a life-changer for them."

Mr Hall hopes to make a successful career in digital marketing and after quitting an online job to set up his own business, he currently works as a freelance pay per click advertising consultant while looking to secure financial backing.

It was while doing some work for a payday lender that he came up with the idea for his new website. "I was told that most applications are rejected because the applicant already has several payday loans outstanding. I felt that there had to be an ethical way out of debt, which I why I launched the website."

He hopes that people who pay hard-up folk for a service also benefit from it. "Those who provide funds can feel good about helping someone while getting a service at a good price."

Anyone who performs a service for someone else and receives cash for doing so, may be liable for tax. However a one-off job shouldn't cause problems.

A spokesman for HM Revenue & Customs said: "It's very difficult to be too prescriptive as there will be lots of different factors in play but in essence if some one is running a business they are legally required to register with us. However, someone is only running a business if they intend to make a profit."

The general advice is to check with your local tax office. To find out more about Mr Hall's scheme go to www.Quickmoneyalternative.com

Suggested Topics
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Recruitment Genius: Customer Service Advisor

    £15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

    Recruitment Genius: Compliance Manager

    £40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

    SThree: Talent Acquisition Consultant

    £22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...

    Day In a Page

    John Palmer: 'Goldfinger' of British crime was murdered, say police

    Murder of the Brink’s-MAT mastermind

    'Goldfinger' of British crime's life ended in a blaze of bullets, say police
    Forget little green men - aliens will look like humans, says Cambridge University evolution expert

    Forget little green men

    Leading evolutionary biologist says aliens will look like humans
    The Real Stories of Migrant Britain: An Algerian scientist adjusts to life working in a kebab shop

    The Real Stories of Migrant Britain

    An Algerian scientist struggles to adjust to her new life working in a Scottish kebab shop
    Bodyworlds museum: Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy

    Dying dream of Doctor Death

    Dr Gunther von Hagens has battled legal threats, Parkinson's disease, and the threat of bankruptcy
    UK heatwave: Temperature reaches 39.8 degrees on Central Line - the sweatiest place in London

    39.8 degrees recorded on Tube

    There's hot (London) and too damn hot (the Underground). Simon Usborne braved the Central line to discover what its passengers suffer
    Kitchens go hi-tech: From robot chefs to recipe-shopping apps, computerised cooking is coming

    Computerised cooking is coming

    From apps that automatically make shopping lists from your recipe books to smart ovens and robot chefs, Kevin Maney rounds up innovations to make your mouth water
    Jessie Cave interview: The Harry Potter star has published a feminist collection of cartoons

    Jessie Cave's feminist cartoons

    The Harry Potter star tells Alice Jones how a one-night stand changed her life
    Football Beyond Borders: Even the most distruptive pupils score at homework club

    Education: Football Beyond Borders

    Add football to an after-school homework club, and even the naughtiest boys can score
    10 best barbecue books

    Fire up the barbie: 10 best barbecue books

    We've got Bibles to get you grilling and smoking like a true south American pro
    Wimbledon 2015: Nick Bollettieri - Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power

    Nick Bollettieri's Wimbledon Files

    Junk balls and chop and slice are only way 5ft 1in Kurumi Nara can live with Petra Kvitova’s power
    Ron Dennis exclusive: ‘This is one of the best McLaren teams ever – we are going to do it’

    ‘This is one of the best McLaren teams ever – we are going to do it’

    Ron Dennis shrugs off a poor start to the season in an exclusive interview, and says the glory days will come back
    Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

    Making of a killer

    What motivated a shy student to kill 38 holidaymakers in Tunisia?
    UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

    Just when you thought your commute couldn't get any worse...

    Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
    Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

    The Real Stories of Migrant Britain

    Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
    Cheaper energy on the way, but it's not all sunshine and rainbows

    Cheaper energy on the way, but it's not all sunshine and rainbows

    Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most