One in four struggling takes a payday loan
Payday loans in the UK are rapidly increasing with four times as many people using these loans in 2009 compared to 2006.
In 2009 1.2m people took out loans with total lending amounting to £1.2bn while 3.5m people are expected to take a payday loan in the next six months.
Steve Rees, managing director of Vincent Bond & Co, said: Since the start of the 2009 recession payday loan companies have managed to pop up overnight.
For some debtors, the only answer they can think of is resorting to a payday loan or loan sharks, but these are fraught with problems.
Lets face it, the name of the latter alone should put you off in the first place, because if you use one and fail to pay back what you have borrowed, the sharks teeth will bite down hard and for some time, which could leave a nasty scar on more than your credit rating.
Do not even think about using a payday loan as a long term method of borrowing money, you will make your situation a whole lot worse.
The research also showed two thirds of those with problematic unsecured debt have got into trouble in the past three years.
The firm said job loss was a major cause of spiralling debt with one client saying: Due to the recession I was made redundant and had to relocate to find work.
I found a job but with less pay my debt started to build up from trying to cover the costs of living.
Bankruptcy was rated as the most effective final solution to debt problems with 93% saying it was effective compared to 7% who said the solution had failed.
IVAs came in second with 91% saying the solution was working compared to 9% who said it had failed.
Some 84% described DMPs as working solutions compared to 16% who said a DMP had failed to solve their debt problems.
The highest failure rate came when people tried to manage their debt on their own. Over half (54%) said it had failed compared to those who said it was working (46%).
number of payday loan places - News
"Suppose you were looking for payday loans in Michigan," says Turner. "You can visit our site and pull up information that you really need to know before you walk into your payday loan office. Things like the maximum amount of finance charges,
Rules to improve lending practices by payday loan companies are unlikely to offer greater protection for customers in the near future, consumer rights campaigners have warned. An updated code of practice announced by the Finance and Leasing Association
Steve Rees, managing director of Vincent Bond & Co, said: “Since the start of the 2009 recession payday loan companies have managed to pop up overnight. “For some debtors, the only answer they can think of is resorting to a payday loan or loan sharks,
Payday Express, a UK provider of payday loans online, has announced the implementation of a new and improved staff induction plan. Payday Express, a UK provider of payday loans online, has announced the implementation of a new and improved staff
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