The rise in popularity of payday loans among UK households highlights the nation’s "unsustainable" levels of personal debt, a government official has claimed.
Research by comparison website Moneysupermarket.com, commissioned by the Times, revealed that the number of payday loans taken out has risen by 130 per cent since last August.
Liberal Democrat MP Vince Cable said the trend is proof of the financial difficulties many Brits are currently facing as a result of the credit crunch and "the unsustainable levels of personal debt in the UK" .
Chris Tapp, member of debt charity Credit Action, echoed the MP’s comments by saying the group’s research revealed more cash-strapped Brits are turning to the loans, which can charge interest rates of up to 1,335 per cent.
"The growth of people who have problems who have such a loan has been notable in the last six months," he commented.
Popularity Of Payday Loans Highlights UK Debt Worries
Popularity Of Payday Loans Highlights UK Debt Worries
Fri, 27 Jun 2008
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