The number of borrowers taking out pay-day loans has seen a significant increase, according to industry experts.
Figures released from Moneysupermarket.com show that there has been a 55 per cent increase in the up-take for short-term loans.
Tim Moss, head of loans at moneysupermarket.com, said that the credit squeeze and the rising cost of living have all been contributing factors.
"The rise in payday loans is astronomical and symbolizes just how difficult people are finding it to cope day to day," he added.
Mr Moss warned borrowers to be careful taking out pay-day loans and highlighted that they are generally only taken out over 30 days and have an interest rate of up to 25 per cent a month.
"They are a bit like taxis -convenient for short journeys, but if you are going a long way there are much cheaper ways to travel," he said.
His advice for rainy days is to invest in a high-interest current account.
Source:- Financialadvice.co.uk/ |
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