Payday loans more popular than ever

August 14th, 2010 6 Comments By Andy Dawson

uk money Payday loans more popular than ever They’re the financial equivalent of a greasy burger from a manky caravan parked by the side of the road, but figures show that the payday loan is more popular than ever before.

This is in spite of APR rates of almost 2,500 per cent in some cases and their rise in popularity has been boosted by the fact that the high street banks are continuing to be miserly with their money when it comes to lending.

Consumer Focus have said that 1.2 million people are taking out payday loans every year, borrowing a total of £1.2 billion, figures that have quadrupled since 1996. As a result, Consumer Focus are calling for more safeguards to be introduced in order to help those borrowers who get out of their depth and are unable to meet repayments.

But many of those people only borrow small sums for short periods of time to tide them over, so are payday loans really as toxic a form of borrowing as the media makes out? Are they just a more legitimised form of the local loan shark or are they a necessary feature on the financial landscape?

Have any of you lot had a payday loan or considered getting one? If you have had one, did it make you feel dirty or did it get you out of a short-term pickle? Did you fall behind with the repayments and get a visit from a cricket bat-wielding man called Big Vern? Let us know in the box below…

Comments (6) Jump to most recent comment
  1. Posted by David August 14, 2010 at 11:27 am

    It’s a sign that the economy is on the up.

    Clearly some people have some money left over from buying scratchcards, fags, 20-20 and the payment on their Bright House sofa so they spend the rest on short-term interest loans. It’s just until Sky put up the price of Sky Sports+Movies again.

  2. Posted by warwick hunt August 15, 2010 at 1:51 am

    Used by a lot of folk who dont have or want a bank account for whatever reason usually to aviod letting the benefits agency know your working.

  3. Posted by smellyc hunt August 15, 2010 at 12:56 pm

    WTF

    IS DIS REAL

  4. Posted by kev August 15, 2010 at 7:47 pm

    WH, are you THE warwick hunt? the betfair legend?

  5. Pay day loans are popular because they are easy to get.

  6. For me fast pay day loans means easy money in short timing. easy to get , now no need to stand in line also provide the safe services.

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