New research warns that people who regularly find themselves relying on payday loans need to reevaluate their finances for fear of a more serious debt problem.
MoneySupermarket.com have reported that since September 2007 the number of people relying on payday loans has increase by almost 55%, a very worrying figure. PayDay Loans are often lent at a much high interest rate, and those who regularly use payday loans to keep them afloat could be masking their debt problems.
There is the risk that borrowers could end up falling into a cycle whereby they pay back the payday loan the following month, effectively spending their wages before they have got them and repeating this process each month.
If you find that you outgoings are often more than your incomings, then this is a serious financial issue which you need to tackle as soon as possible. If you need help to manage debt then One Advice can help. We can offer advice and information on a number of leading debt solutions, such as a debt management plan.