Collapse of Thomas Cook leaves 9,000 former employees turning to friends for cash

FairMoney.com unveils that 53% of Britons have a disposable income of less than £0

Dr Roger Gewolb, Founder and Executive Chairman of FairMoney.com, comments on how further collapses will reveal the sorry state of personal finance in the UK

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Following the collapse of travel icons Thomas Cook, 9,000 former employees have been left vulnerable without receiving compensation for their loss of jobs. As legal battles rumble on, many employees of the now defunct travel operator have provided testimony, unveiling that they are turning to their friends and family for cash in a bid to stave off financial woes.

Sadly, this situation is indicative of the wider picture in which personal finances in the UK have sunk to all time lows. Research titled ‘Brexit Broke Me’, commissioned by FairMoney.com unveiled that 10.5 million Britons were in the worst financial position of their lives. Now, FairMoney.com can unveil that 53% of Britons have disposable income of less than £0. For former employees of Thomas Cook, the outlook is looking particularly bleak. Sadly however, it is emblematic of a wider societal trend in which personal finance in the UK is being crippled.

Commenting on the status of personal finance in the UK, Dr Roger Gewolb – Founder and Executive Chairman of the fair loan price comparison site, FairMoney.com – has called for a greater focus on rectifying this critical issue, that seemingly, is going under the radar.

“In the way that Thomas Cook has unraveled before our eyes, if further collapses of major employers occur, we shall unfortunately see the extent to which Britons are struggling to make ends meet. Personal finances across the UK are being crippled, yet there seems to be very little being done to secure people’s futures. For example, since 2015, a third of all banks on the British high-street have been closed. Not only do these banks provide secured loans for those in need, but they offer accessible and face to face financial advice. Through conversations, those who are most vulnerable are less likely to make rash decisions that would in fact worsen their financial position. These high-street banks should be seen as essential institutions, yet there is nothing being done to curb their closures.

Secondly, there is a lack of provisions for fair finance through secure loans. Since the financial crash in 2008 the large banks have been reluctant to lend money in the same quantities and frequencies. This has spawned industries and markets such as the peer-to-peer lending market. Though I am a big fan of the idea of the P2P market, the industry is sick. We have seen weaknesses in the P2P market through the inefficiencies of the FCA’s regulations, and the collapse of Lendy has shown that millions of pounds is lost when provisions aren’t made to protect these investments. This means that people in dire need of small, doorstep loans have reduced accessibility, shrinking the market.”