Skip to content
     
 

More people seek help with payday loans

31/07/2023

Recent figures from the Money Advice Trust’s National Debtline show that calls to the service over payday loans have more than doubled in the past year, indicating that more people than ever are having trouble managing their finances. In the last six months, the charity has logged 9,500 calls for help with payday loans: financial products which are typically easy to get but come with high rates of interest.

Joanna Elson, chief executive of the Money Advice Trust, said it is vital that the payday loan industry is scrutinised by the government and made to adhere to certain standards to prevent more people from falling into a cycle of debt - something which can leave them unable to pay their mortgage and in need of a fast home sale.

“We have several areas of particular concern around payday loans and the new codes have done little to address these issues. Ultimately, unless a single code of practice binding on all lenders is put in place, clear protection for consumers is unlikely to be achieved,” she said.

The Money Advice Trust recommends that anybody struggling with debt seeks free, impartial advice on their situation before taking action, and tries to avoid borrowing more to solve their problems.

Buying Houses since 1972