NHS workers top list of those applying for payday loans

NHS staff, council officials and gig economy workers are among the most regular applicants for payday loans, which charge interest of up to 1,325% per year, reports The Guardian.

Around 300,000 people a month take out the high-cost short-term credit. At the end of 2016, 1.6 million people had payday loan debt, with the average loan just over £300. Around one in eight of the debtors was in arrears, according to the Financial Conduct Authority.

The Money Advice Trust told a parliamentary inquiry into payday loans last year that “when young people reach 16 to 24 and are thinking about borrowing, they are more likely to go for high-cost credit than the mainstream alternatives”, purely because the marketing was so “slick” and the online experience so easy.

The figures released on Wednesday by the Cash Lady comparison website collates loans issued by companies including Quick Quid, The Money Shop, Sunny and 118 118 Money. Cash Lady said the lenders charge interest rates between 68.7% and 1,325%.

See full Guardian story here

Remember you can avoid these penal interest rates with affordable loans from your local credit union.  go to our Loans page to see how we can help you

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