Usually there’s no dearth of horrible news when it comes to payday loan companies doing their best to drive you mad, but the past week or so has featured high street lenders.
Lenders are scrambling to slash the interest rates on their cash loans ahead of a rumored drop in the Bank of England’s base rate that is supposedly looming on the horizon.
Low-income earning customers across the UK can now gain access to a website that offers as much as 50 per cent off household goods in an effort to provide some respite from the high interest cash loans provided by payday lenders and other sources of expensive credit.
While instant cash loan companies and their proponents may have recently cheered to see two credit unions censured by an industry watchdog, confidence is high that the sector will continue to grow and become an excellent alternative to no credit check short term loans when it comes to Brits in need of cash but who are unable to turn to High Street lenders.
Payday loan use has quadrupled over the past four years, experts say, with the trend continuing to grow in the future.
The British Bankers’ Association discovered that traditional forms of borrowing, such as taking out cash loans, using overdraft facilities, or making purchases through credit cards, remained weak over the past year.
Payday loan companies beware: Islington Credit Union has declared a new ‘war on debt,’ and those offering short term loans with high interest rates have been named enemy combatants.
Welsh families falling into debt from an inability to repay cash loans will most likely be seeking help in far greater numbers soon, according to one debt advice charity’s expectations.
MPs have recently stated that the cash loans industry may require swift governmental action due to its poorly regulated and opaque nature, payday advance experts have remarked.
According to one cash loans provider, seven out of every ten adults in the UK suffer from debt, yet many refuse to confront the problem and seek help, instead allowing the problem to get out of hand.