Payday loans on the up, says poll
Article Category: Debt Management Help and Advice
There is an increasing amount of payday loans being taken out by UK households due to bad debt, new research has found.
A report by Moneysupermarket.com – commissioned by the Times – revealed the total number of payday loans taken out by Brits has soared by 130 per cent since last August.
Vince Cable, the Liberal Democrat shadow chancellor, said the trend proves people are struggling to cope with bad debt as a result of the credit crunch, reports the publication.
Chris Tapp, of debt charity Credit Action, agrees with the MP’s view saying those with financial difficulties are increasingly turning to such loans which can charge interest rates of 1,335 per cent.
"The growth of people who have problems who have such a loan has been notable in the last six months," he added.
A report by charity YouthNet released earlier in the week revealed half of the UK’s youngsters have experienced debt problems.
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