Will Payday Loans Help? One in Five Brits Consider Bankruptcy
This can't be a coincidence: as reports surface that more residents of the United Kingdom are facing involvency than ever before, the first online payday loan opportunity springs up in that nation.
Let's start with the first piece of information: A recent poll shows that one in five people with more than 10,000 pounds in unsecured personal debt, is considering filing for bankruptcy.
The survey, conducted regularly by debt consultancy Thomas Charles, shows a rise since March, when one in seven was considering insolvency.
Does this mean that resources such as faxless payday loans would help consumers or hurt them more? There's no definitive answer.
The government will reveal on Friday the latest UK insolvency figures, which are expected to show a fresh increase.
The survey suggested that more people were having difficulty repaying their debts than ever before; as the percentage of those who said that they couldn't make their monthly debt repayments increased between March and July, from 21% to 23%.
Drastic action, payday loan action needed? Malcolm Hurlston, chairman of debt charity Consumer Credit Counselling Service (CCCS), said many people were choosing insolvency who ought not to.
"We find that insolvency is the right course in about 3% of cases," he said."It is often better to take less drastic action, such as agree token payments with creditors and draw up a plan to pay off debts gradually."
Mr Hurlston did not mention anything about instant payday loan use. He added that the CCCS had seen a 40% annual increase in the number of people asking for help with debt.