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Friday, June 27, 2008

Rise in payday loans highlight's debt problems

There has been a large rise in the number of households taking out payday loans since the start of the credit crunch. This highlights the level of unsustainable personal debt in the UK.

The number of payday loans taken out since August 2007 has risen by 130%. This is a large but not unsurprising increase due to the availability of credit being rapidly reduced since August.

It also shows the financial difficulties that many people in the UK currently find themselves in as a result of current economic conditions. These loans have interest rates of up to 1,335% but are often the only lifeline for people.

These type of loans are generally unsuitable for people who are looking to clear their debts.

If you have any questions in relation to this article, please feel free to contact Solution Mortgages on 0845 123 1260.