Whether you’re a large-scale national debt advice charity or one smaller in size, nearly everyone is very concerned about the state of payday lending in the UK.
Everyone I talk to or read about is incredibly worried about debt from payday advance lenders and their short term loans. In fact, the Hemel Hempstead debt centre manager for Christians Against Poverty, Owen Cooper, is absolutely convinced that it won’t be long until payday loan related debt becomes a serious problem for those coming to CAP with debt problems.
It’s an absolute struggle for all too many households to deal with the marked increase to council tax and utility bills, and that has led to many considering tasking a payday lender up on their offer of instant cash loans up front without having to go through the vagaries of a credit check. However, interest rates and late fees are so high on these payday loans that Mr Cooper had to speak out against them, remarking that really any loan is a bad idea when you’re running into problems as it is making ends meet with the cash you have.
Meanwhile, National Debtline has said that there is absolutely a massive increase in the number of people going to it for help with payday loan related debt. In fact, there were more than 20,000 calls placed to the debt advice charity over the course of 2012 that were exclusively about payday lending debts – and that was almost twice as many as National Debtline received in 2011.
These figures are absolutely terrifying, if you ask me. The idea that some 20,000 Brits are getting themselves into trouble with these lenders makes me hope and pray that the Government will get its act together and start to regulate this sector of the lending industry.
Sure, payday lenders claim that they provide ‘a valuable service’ to anyone who can’t qualify for a standard loan from a bank or a building society, but why then to they charge so much blasted interest and wring people out when it comes to late fees? Bunch of right bastards if you ask me, and I’d like to see them put in their place finally before they do even more damage to our already fragile economy – you can’t tell me that there’s a reason for a lender such as Wonga to charge more than 4,000 per cent in annualised interest and then slam a borrower with insanely high late fees if they miss their repayment deadline.