There seems to be a decrease in the number of people taking ut payday loans with 6% of British adults saying that they would take out a payday loan in the next 6 months as opposed to 11% in October 2012.
This is encouraging news and is mainly attributed to the negative press that payday loans have quite rightly been getting. It may also be attributable to an improvement in the economic conditions and the fact that consumers and lenders are feeling more confident and are able to borrow and lend more.
However a high proportion of those that said they were likely to take out a payday loan were in the 18 – 34 age groups. Is this because that age group find it difficult to raise funds in the more tradiditonal ways as they have not managed to build up good credit ratings. In addition this age group are finding it difficult to get on the property ladder therefore have no assets with which to secure a loan.
Borrowing from payday lenders can be eye wateringly expensive and we urge peoople to avoid using these lenders as the rates of interst charged often give a very short term fix but exacerbate an existing problem in the medium term.
It is important for anybody facing financial difficultes, wether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.
To take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.
Redman Nichols Butler has had a York office for over five years now and specialises in advising SME businesses in York, Thirsk, Ripon and the rest of North Yorkshire. The Redman Nichols Butler York office address is, Westminster Business Centre, Nether Poppleton, York, YO26 6RB.