The worsening UK economy has forced millions of consumers to live on expensive payday loans.
Nearly seven million Britons are risking a “spiral of debt” through using credit cards, overdrafts and payday loans to pay off their rent or mortgage, a major housing charity has warned.
“The council of mortgage lenders are predicting a 20% increase in the number of repossessions this year, and that’s with interest rates at a 200-year-low. Private rents are going up.
“We are really starting to see increasing numbers of people who are just squeezed into this situation, whose situation hasn’t changed but all the costs around them have.”
Lack of regulation over payday loans in the UK is said to be part of the reason behind the risky financial environment in the UK.
The findings are likely to fuel calls to regulate the payday loans industry, which politicians and financial experts have warned put people at risk of creating insurmountable levels of personal debt.
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