Larger loan costs for women in their twenties
27/02/09
According to research in the last part of last year people in their twenties and in particular women are faced with significantly higher loan costs.
Since August 2008, the number of people aged between twenty-five and thirty-four are having to spend over half of their income on debt payments and other unsecured loan payments according to a survey from Callcredit, an online credit report provider. The research suggests that as many as fourteen per-cent of people within this age range and in particular women are spending almost half of their earnings on paying for their debts.
Interest on short term loans such as payday loans carry a massive APR, with many charging as much as over 1,000% according to Moneysupermarket.com the money comparison website.
“Payday loans are the ultimate barometer of how tough things are in much of the real Britain,” commented head of loans from Moneysupermarket, Tim Moss.
He continued “We saw an explosion of payday loans from January 2008 onwards with more and more people using all of their income on essentials but still not being able to get through to the end of the month.”
'We will know the economy is starting to recover when the trend starts heading back down again.”
