Payday Loan Times

Due to student loans and a lack of credit, you'd think young consumer were most at risk for falling into debt. These individuals are not familiar with online payday loans, either; they're more likely to not understand such interest rates.

And, don't get us wrong, this age group does fall into debt. However, recent information from abroad makes it apparent that UK consumers in their 50s are increasingly struggling with credit card debt. A government report published today warned that the number of insolvencies in England is likely to rise as this trend continues.

The Consumer Credit Counselling Service (CCCS) said that while credit card spending has slowed over the past 12 months, people aged 53 and above are the only age group still increasing their spending on plastic. No information was made public about the tendeny of these individuals to apply for cash loans of any kind.

The proportion of people between the ages of 53 and 59 seeking help from the above group has risen to 23% of the total, up from 19% in 2003. These over 53s now have the biggest outstanding credit card debt in the nation, while those in their 60s have increased their credit card borrowing by one third between 2004 and 2005.

The average outstanding credit card debt of CCCS clients is now 12,422 pounds, spread over three cards; an increase of 50% in three years. People seeking advice from the CCCS in the 53 to 59-year-old age bracket now owe on average 17,697 pounds on credit cards, while those in their late 20s have credit card debts of 7,706 pounds.

The numbers are disturbing. It's possible that using a faxless payday loan and quickly paying off these balances would actually be a helpful endeavor.

Frances Walker, spokeswoman for CCCS, said the over 50s had grown up with credit cards, the first of which was launched 40 years ago, and may, therefore, feel more comfortable using them.

"The added pressure on people in that age group, who might be supporting their children and their own parents, as well as the rising costs of living with increased utility and council tax bills, could mean that they turn to credit cards," she said.

Walker also warned that people borrowing 2,000 pounds and only making the minimum repayment each month would take more than 20 years to clear the debt.

Some sort of assistance is obviously needed. Whether it's borrowing money from a friend, applying for short term payday loans or being placed on a payment plan, these consumers can't just sit back and do nothing.