Payday advance loans are becoming an increasing burden on the purse strings of the poorest families, a new survey conducted by consumer information site cashdayadvance.net suggests.
Glasgow, 27 June 2007 - Attractive payday advance loans are becoming increasingly popular for struggling families, a new survey reveals. The study into the borrowing habits of households with below-average earnings found that the rate of growth in the payday loan sector amongst this demographic is increasing at a considerably more rapid rate than across the rest of the market, a finding that has worried experts.
Industry analyst Fraser Lamb finds the outcome of this new no faxing payday loan survey alarming.
“The fact that these types of loan are so readily available to those with poorer credit ratings makes them ideal as a stop-gap solution. The problem is that many people find themselves stuck in a constant loop of borrowing against their wages, which can be very difficult to reconcile at the end of the day. I want to see a shake-up of how these types of finance are marketed, and I want to look at the various ways in which we can make it clear to people that although payday advances are useful, they shouldn’t be used as a lifeline on a continual basis.”
While payday loans are found to be falling in price on average, statistics show that they continue to be one of the highest interest forms of finance available to consumer borrowers