New studies in Finances have shown the following results: UK consumers used Payday Loans (PDL) twice as much in January than they did in December 2016, which shows that the incredible need for Payday Loans is rising. Holiday months are usually the busiest months for PDL, but even last year’s gift-giving could not compare with this year’s demand for funds.
According to the recent research, almost 50% of full-time workers in the UK do not make enough money to cover their lifestyles in between paychecks.
Unfortunately, many people shy away from credit cards because of various reasons: one of which being that they are afraid of paying overdraft fees. The majority of 2,000 interviewees admitted that their bank accounts were suffering from too many overdraft fees and other related charges. However, that is not to say that PDL are the right choice for everyone. The best way to avoid a vicious cycle of debt is to budget correctly. PDL should only be reserved for emergency cases, where the borrower is sure that he or she will be able to pay it back in full with his or her next paycheck.
As we mentioned before, we are already seeing a significant spike in PDL activities this year, and we are only in the first month of 2017! This phenomenon might be due to the fact that there were mass outlays during the holidays. Therefore, more people began applying for financial assistance in the form of PDL in the New Year. If this is true, it is no wonder why Payday Loan activities in the UK have already doubled the applications from December 2016.
According to the research, the UK city which resorts to Payday Loans most often is London (UK). 55% of Londoners who participated in the research said that they have experienced not having enough money to last them until the next paycheck. The UK city that is least likely to resort to Payday Loans is East Midlands. Even so, a whopping 39% of their survey participants admitted to needing Payday Loans at one point or another.