England 11/04/2012 – The current economic climate means more people are turning to pay day loans
In the UK, the pay day loans industry is growing rapidly. It is a loan service that began life in America. It has only really been widely available in the UK for the past five years. However, during that time it has become a widely used service. Every year, around 1.5 million people take out these loans. Many consumers do so more than once a year. For many people these loans provide a lifeline that takes them through short-term financial crisis.
More and more people no longer have savings to fall back on. For example, if a car needs repairing they often do not have money in the bank to pay the garage for that repair. This means that they can go for three or four weeks without their car. Using a payday loan, they can get the car back immediately. This means that they have the transport they need to get them to and from work, which allows them to keep a much-needed job.
In the past, they would have been able to pay for their vehicle repair on or credit card or using their savings. Now fewer people have that option available to them. In the current economic situation, getting any form of credit has become far more difficult. In many cases, payday loans are filling this gap.
Pay day loans will continue to grow in popularity
Given that, the current economic climate is not likely to improve any time soon more and more people will find themselves in need of this kind of loan service. The fact that many lenders will lend to people with poor credit histories also means that demand will continue to grow. More and more UK residents are struggling to pay back their personal debt, so are ending up with poor credit ratings.
Payday Power, one of the UK’s fastest growing payday loan companies has seen business soar over the past two years. The fact that they make loan decisions and pay their loans into people’s bank accounts with an hour or two is part of the reason their share of the market has grown so quickly.
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