Many broadsheets have noticed the growth in the payday loan market. In general it is reported that the number of payday loans being offered has quadrupled since 1996. Some 1.2 million people are borrowing a total of £1.2 billion altogether. Most journalists have obviously pointed out the risk and dangers of borrowing, constantly referring to the idea that everyone struggles to pay back the loan and that the industry takes advantage of people who try to be prudent, pushing them into a ‘debt cycle’. In particular, critics highlight the high rate of APR that payday loans involve.
Here at 247Moneybox.com we’d like to point out the flip side of such loans. What the critics don’t seem to recognise is that this is an emergency service. These loans are offered on a very short-term basis. They are usually used to ensure that people don’t become overdrawn or late in paying their utility bills.
Tags: Payday Loans
