82% rise in payday loan devastation
Despite the fact that payday loans are instruments of the devil, there’s been a huge rise in people desperately applying for payday loans at INFINITY APR. That’s according to debt charity Step Change, who are dealing with an 82% rise in tearful people coming to them after getting into a mess with their Wonga.
At the moment, their average client has a staggering THREE payday loans, with an average debt of around £1700. And on average, they’re struggling to pay them back on a wage of £1,381 a month. Some people have only started out with small debts, which have ballooned because of the ridiculous interest rates. One man only borrowed £200, and now owes almost £2000.
The widespread harm and misery caused by payday loans continue unabated.’ said Mike O’Connor from Step Change.
‘The industry has failed to address the problems causing untold misery and damage to financially vulnerable consumers across the UK.’
In April the FCA is taking over the payday loans industry, and Step Change has suggested running real-time credit checks so that customers can’t borrow multiple loans, as well as a ‘debt escalation cap’ which will limit the amount of charges they can pile onto beleaguered borrowers.
Leaving a train of devastation in their wake, payday loans really are the worst thing to happen to Britain since Jim Davidson.