Great Britain sees a rise in payday loans

The amount of installment loans taken out has had a significant boost in Great Britain over the last month. The increase continues to sharply escalate following the Financial institution Holiday at the beginning of the month. The demand has seen about a 58 percent increase from the same time in April.

Costs go up even more

Several think that Great Britain’s economy could be forecasted based on the boost in installment loans. Moneysupermarket.com explained that in just the last six months, the average amount spent by a great Britain family in one week has increase by 54 pounds, which is about $87.

No boost in wages

There has been a huge struggle for working people since wages have been stagnant. At the same time, prices have been increasing quite a bit. A report recently put out by Scottish Widows claims that about 8.5 million households would be in deep trouble financially should their primary source of income end. Only about 25 percent of individuals surveyed reported that they would be financially stable in the long term if their income was lost.

The Customer Protection Report from Scottish Widows also reported that almost half of the country’s families with children are reliant upon two salaries.

Payday loans an economic barometer

Tim Moss, who’s the head of loans and debt for the Moneysupermarket.com site, claims: “These goods act as a barometer, giving a unique insight into the state of the nation’s finances.” Moss continues, “It’s no surprise to see the demand for installment loans rise so sharply in the current climate.”

Cash advances often cheaper than overdrafts

Moss adds, however, that despite their critics, these types of loans are often a better value than the penalties faced when entering an authorized overdraft.

Make the right choice

Don’t just take out a payday advance. Make sure you consider what you are doing first. It will cost even more to pay back a cash advance loan if it isn’t paid in time. Typically only a few weeks are given to pay them back.

Citations

My Finances

myfinances.co.uk/loans-and-credit/2011/05/17/payday-loans-rise-in-popularity-after-bank-holiday-spending

Payday Bank

paydaybank.co.uk/news/

Yorkshire Post

yorkshirepost.co.uk/business/business-news/demand_for_payday_loans_on_the_rise_1_3403086