Payday loans ‘used more frequently’
People are running out of money before they get paid and are turning to loans to fund general living, it has been claimed.
According to a recent survey in the Times, payday loans are being used more frequently because the credit crunch is hitting people hard.
The report found that in the past ten months, the amount of payday loans taken out has risen by 130% because consumers are struggling.
Chris Tapp from Credit Action asserted that it is obvious that this is a problem for people and that these form of loans are growing in popularity.
A fee of £125 is added to each £100 taken from Payday UK, the Fair Investment Company said, while loans come with an average APR of 1,335 per cent.
Debt in Suffolk is beginning to escalate because the cost of everyday life is rising as a result of the present economic conditions, the Citizens' Advice Bureau has noted.
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