Payday loans more popular than ever

Consumers find it increasingly more difficult to obtain loans they need because of stricter lending criteria established by traditional loan providers.

In the meantime, more and more people are resorting to payday loans.

According to the latest study conducted by Consumer Focus, the number of applications for payday loans has quadrupled over the period of the past four years. Today, more and more people can’t do without them.

An average payday loan charges about £20 for every £100 borrowed. Even though this amount may seem insignificant, it is actually too much since it must be repaid over a short term, usually just a week or two.

In addition, the study revealed that an average payday loan in 2009 constituted just £294 and those who used them were taking out on average 3.5 such loans annually.

According to Consumer Focus, there is a need of a new regulation for payday loans to protect those who use them.
 


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