Research shows 1.2m taking out payday loan each year

Story link: Research shows 1.2m taking out payday loan each year

According to research by watchdog Consumer Focus, the number of people taking out a payday loan has quadrupled in the last 4 years.

The consumer group said 1.2 million people are now taking out a payday loan every year – borrowing more than £1 billion.

Payday loans are becoming more popular and are seen as attractive – particularly to those who have been finding it hard to secure finance.

However, it is recommended that these types of loans are best reserved as a product of last resort, since loan interest rates offered may not be competitive by comparison to high street rates.

http://www.financemarkets.co.uk/2010/08/15/research-shows-1-2m-taking-out-payday-loan-each-year/