Payday loans on society
Perhaps I’ve been watching too much TV, but I’m sure every second advert before, during and after the soaps is for a payday loan. The APR is frightening and what’s worse is the debt problem with payday loans is growing.
The effect of payday loans on society
Payday loans have the potential to put the most vulnerable people at risk. Service users we speak to and who have payday loan problems often have a degree of mental health issues too. The high interest rate and late charges mean repaying this debt can be impossible for people on low incomes. In the end, it’s financial quicksand; people can’t get back out of their payday loan hell. However Debt Support Trust can help.
We’ve completed some payday loan statistics based on the people we have helped. Typically a person with payday loan debt will have;
– 4 different payday loans on average
– People owe on average £1,200 in payday loans
– 40% of people were borrowing money from payday loans to pay for basic living costs
– Most people borrowed money from a payday loan company to pay another payday loan company.
– Most social demographics borrow money from payday loan companies and have asked for help, including pharmacists, teachers and accountants.