A recent report put out by the homeless charity Shelter says that approximately one million Brits have taken a payday loan in order to cover their monthly mortgage or rent expenses. Rather than face losing their homes or their rental units, they are resorting to using overdrafts, personal loans or credit cards.
The chief executive of Shelter, Campbell Robb, said, "These shocking findings show the extent to which millions of households are struggling to keep their home." Mr. Robb warned that a payday loan is, of course, a terrible and dangerous way to try to pay for basic expenses since they can "quickly lead to debts snowballing out of control."
Consumer groups have turned on payday loan companies, which is an industry worth close to £1billion a year, since they make it too easy to borrow money. And, most people don't realize just what borrowing that money will mean for their bottom line. Some companies advertise that they will transfer as much as £1,000 into a bank account within 15 minutes of the application.
Martin Lewis, the founder of the website called MoneySavingExpert.com said that Britain should not allow payday loan companies to function in the country. As he said, "Many struggling with rent or mortgage commitments will struggle to repay payday loans on time too. It is an obvious temptation to grasp these loans as a lifeline, but in the long run, it may hurt more than help."
A recent report put out by the homeless charity Shelter says that approximately one million Brits have taken a payday loan in order to cover their monthly mortgage or rent expenses. Rather than face losing their homes or their rental units, they are resorting to using overdrafts, personal loans or credit cards.
The chief executive of Shelter, Campbell Robb, said, "These shocking findings show the extent to which millions of households are struggling to keep their home." Mr. Robb warned that a payday loan is, of course, a terrible and dangerous way to try to pay for basic expenses since they can "quickly lead to debts snowballing out of control."
Consumer groups have turned on payday loan companies, which is an industry worth close to £1billion a year, since they make it too easy to borrow money. And, most people don't realize just what borrowing that money will mean for their bottom line. Some companies advertise that they will transfer as much as £1,000 into a bank account within 15 minutes of the application.
Martin Lewis, the founder of the website called MoneySavingExpert.com said that Britain should not allow payday loan companies to function in the country. As he said, "Many struggling with rent or mortgage commitments will struggle to repay payday loans on time too. It is an obvious temptation to grasp these loans as a lifeline, but in the long run, it may hurt more than help."