Surge in pay day loans raises issues about unsecured debt

Surge in pay day loans raises issues about unsecured debt

There’s been a razor-sharp jump in the sheer number of payday advances, increasing issues about increasing personal debt.

Over 5.4 million pay day loans had been drawn in the entire year to June 2018, relating to economic regulator the Financial Conduct Authority (FCA).

This even compares to 4.6 million removed the past 12 months.

The quantity lent in addition has increased dramatically. Within the 12 months to June the full total worth of loans ended up being ?1.3 billion, up from ?1.1 billion between July 2016 and June 2017. The amount that is total ended up being ?2.1 billion.

The typical loan value when you look at the 12 months to 30 June 2018 had been ?250, even though the average quantity repaid was ?413 – 1.65 times the common amount lent.

The FCA claims that present financing volumes stay well down in the past peak in 2013, though there has been upward trend over the past couple of years. Continue reading “Surge in pay day loans raises issues about unsecured debt”