Five million British adults are considering taking out a payday loan in the next six months, according to R3, the trade body for insolvency professionals.
Research undertaken by ComRes found that this is a 50 per cent increase on the same time last year when 3.5 million people said they were likely to seek a payday loan in the next six months.
R3 council member Louise Brittain says the payday loan can no longer be regarded as a niche form of credit: ?It is staggering that in one year the number of people considering taking out a payday loan has increased by 50 per cent, highlighting the payday loan phenomenon is here to stay.
?If used in the right way, to fill a genuine one-off gap in finances, a payday loan does have a place. However they are increasingly being taken on as a debt solution instead of a financial solution.
?We know from last year that one in three couldn?t pay off the first payday loan so had to take out another one ? and now 12 per cent of 18-24 year olds have prioritised paying back this debt over buying food in the past six months. This is surely not what the payday providers intended.?
The popularity of payday loans is much more evident among 18-24 years - 26 per cent are likely to seek a payday loan in the next six months while just 4 per cent of those aged 45 and over are likely to do so.
This comes at the same time as concern over debt levels plagues much of the population where 59 per cent are currently worried about their debt.
Brittain continues: ?Debt has been normalised, attributable in part, to the clever marketing campaigns of the big payday lenders. These loan companies operate glossy websites and even sponsor football teams and are capitalising on a generational shift in attitudes towards saving and debt. Currently 29 per cent of GB adults do not have any savings.
?However, the problem with payday loans is you can end up paying much more later on. It seems younger generations will borrow money if they really want something ? saving and waiting isn?t common place ? many of these people tend not to have the credit rating to call at more traditional establishments, with more comfortable terms, and have therefore resorted to payday loans.?
Date: November 15, 2012
Author: Joanne Atkin
Source: http://www.mortgagefinancegazette.com/payday-loans/rise-of-the-payday-loan/
my morning jacket roger goodell psychosis dianna agron million hoodie march tebow trade mike the situation
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.