Consumers warned over relying on payday loans
Consumers who find they regularly rely on payday loans have been advised to take immediate action to address the state of their finances.
Payday loans are short-term high-interest loans designed to help people to manage financially until they receive their next monthly wage.
Latterly, the loans have proved a significant growth area, with Moneysupermarket noting a 55.4 per cent increase in take up for the products since September 2007.
However, according to Beccy Boden Wilks, a spokesperson for National Debtline, the use of payday loans on a frequent basis is typically a sign that a person is "overcommitted" financially.
As such, it is vital that they look at ways to improve their situation or risk falling into debt, she added.
Ms Boden Wilks advised: "If somebody feels the need to use a payday loan on a regular basis, it's probably symptomatic of a serious underlying debt problem.
"So, you need to look at budgeting, or [ask] are your credit commitments too high, or have you overcommitted yourself with your mortgage?"
Source :: londonstockexchange.com
