Thursday 22nd May 2008
The increase in the use of payday loans is indicative of millions of Britons' problems with debt, a charity has claimed.
Since September 2007, take up for payday loans, which offer short-term high-interest finance to consumers, has increased by 55.4 per cent, according to figures from moneysupermarket.com.
Beccy Boden Wilks, a spokesperson for National Debtline, said that this trend is a sign that millions of people are financially "overcommitted" and could be facing debt problems in future.
She advised anyone who is regularly using payday loans to look at their budget and consider seeking advice over how to manage their debt.
Ms Boden Wilks commented: "Are you paying out more than you get in each month? If you are, then you need debt advice, to see where you can make cutbacks.
"You may need to negotiate smaller payments with your creditors…or your mortgage lender."
Payday loans are typically available from money shops such as Cash Converters.
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Loans
City analysts today warned the government that the British economy is set to witness a recession which could last up to 18 months. Capital Economics predicts that the gross domestic product for the... 
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