The increasing popularity of Pay Day Loans in the media has drawn many views on the subject, leading us to look at the potential risk of such debts.
A report published by R3 indicates that more than 5 million adults in Great Britain are considering taking a payday loan in the next six months, to cover costs indicated with Christmas and to assist with their finances in the new year.
The report continues to advise that this is a 50% increase on the number from the last year, when these loans started to appear on a national scale.
When looking at the demographics, R3 indicates that these loans will prove most appealing to the younger generation, with more than one in four of 18-24 year olds likely to obtain a pay day loan in the next six months.
This figure is above the average across all ages of 11%, and 4% of those aged 45 or over.
The report indicates that people are currently prioritising repayment of these loans over buying food for their families, which demonstrates the threat that these types of loans are proving to the financial stability of individuals.
Source: http://www.r3.org.uk
