Reliance on payday loans 'could signal debt problem'
Thu 22nd May 2008
Advice service National Debtline has warned that people who regularly use payday loans to keep themselves afloat financially could be masking a more serious debt issue.
Beccy Boden Wilks, a spokesperson for the firm, noted that not only is the interest rate often very high on payday loans, meaning better options are probably available, but the very fact of having to take one out raises concerns.
Fundamentally, she said, if a person's outgoings are more than their income then there is an issue to be resolved.
"If somebody feels the need to use a payday loan on a regular basis, it's probably symptomatic of a serious underlying debt problem," she added.
Ms Wilks recommended that anyone that has got themselves into such a habit needs to consider budgeting, or look at whether they have overcommitted themselves with credit or a mortgage.
According to recent research from Moneysupermarket.com, the take-up of payday loans has increased by 55.4 per cent since September 2007.
Source : http://www.moneynews.co.uk
|
