(PRWEB UK) 26 September 2012
Payday loans are often the only way people can borrow once they have been refused personal loans, credit cards and extending their overdraft.
The study’s results also found that almost 14 million people (28 per cent of the population) in the UK use some form of credit such as loans and credit cards to pay for their bills, with the average amount borrowed £259.
The study also suggested that many households in the UK have drained funds in their current account and are living on monthly earnings and borrowing in a variety of formats.
A spokesperson from SmartDebit, shared her thoughts on the research:
“At SmartDebit, we discourage people taking out these short-term cash advance loans as they can have extortionately high interest rates and people can become dependent on them leading to a vicious ongoing cycle of large debt.”
“We advise those who are enduring financial difficulty to look at alternatives as well as reiterating the importance of reviewing their money management. Setting up Direct Debits where possible allows you to have routine scheduled payments to various organisations, making your personal financial management easier.”
SmartDebit™ are the UK’s leading Direct Debit service providers, specialising in payment processing services since 1998. A Bacs approved Bureau, scoring ‘Excellent’ in all five categories of the Bacs audit, and ISO 27001 compliant. Providing a complete range of services: Outsourcing; SmartDebit-Admin cloud based portal; SmartDebit-Online payer sign up; SmartDebit-API integrated solution and SmartDebit-Contingency.