Report highlights rise of payday loans

A new report has highlighted the growing prevalence of payday loans across the UK.

Figures compiled on behalf of Moneysupermarket.com have shown that an increasing number of British consumers are resorting to short-term high-interest loans in order to cover their end of the month spending.

Since September of last year, the number of payday loans being agreed on a monthly basis around the country has risen by more than 55 per cent.

Millions of people are facing debt management problems and the price comparison firm behind the recent research insists that the data demonstrates how serious these issues are becoming.

Reflecting on the wisdom of using payday loans, Tim Moss from Moneysupermarket.com said: “They are a bit like taxis – convenient for short journeys, but if you are going a long way, there are much cheaper ways to travel.”

Meanwhile, Chris Tapp, director of the charity group Credit Action, has urged people struggling to become debt free to take steps to avoid being over-reliant on credit.