People are turning to payday loans to get by
14/11/08
A survey has shown that one in ten people in the UK are turning to payday loans to get by.
With Christmas approaching people need extra money for shopping so they are turning to loan sharks and payday loan providers. With credit getting more and more difficult to come by via the normal places people are not left with many options.
A representative from Credit Action, Francis Walker, has highlighted the problem of seeking this type of borrowing which involves a high interest of borrowing.
"Even pawn brokers are supposed to be more successful at the moment because people have difficulties, particularly the less well off," she revealed.
Ms Walker expressed her sympathy for those in such situations and said she understood why people "desperate" for money would go to such measures, but she warned borrowers that it can be "very expensive".
Those with financial difficulties should seek help credit unions.
Another research on the Abbey Credit Card, which took place recently, showed that disposable income has dropped by about 30 per cent over the past two years.
