Payday Loans Fuelling Consumer Debt Problems | Debt Advice Foundation

Payday Loans Fuelling Consumer Debt Problems

Our latest research has found that payday loans are fuelling consumer debt problems, while demand for this type of easy-access credit appears to be soaring across the UK.

The charity’s latest survey has found that 41 per cent of those struggling with debt claim their financial problems are the result of high interest ‘payday’ lending. We’ve also found that online searches for ‘payday loans’ have worryingly doubled in the past 12 months.

Our latest research has found that payday loans are fuelling consumer debt problems, while demand for this type of easy-access credit appears to be soaring across the UK.

The charity’s latest survey has found that 41 per cent of those struggling with debt claim their financial problems are the result of high interest ‘payday’ lending. We’ve also found that online searches for ‘payday loans’ have worryingly doubled in the past 12 months.

One in four people who’ve taken out a payday loan – needed the money to buy food or essentials for their household, with 44 per cent using them to pay off other debts, and one in ten (9 per cent) claiming to have used the money to buy something they could have done without.

Our research also revealed that almost half (49 per cent) of those who had used this type of credit didn’t feel they had been fully informed about the rate being charged and the total amount they would pay back.

Click here to read the full press release.

 

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