Monday, 28 January 2019 14:26

Increase in people opting for shorter loans

Over a million more people took out a short term loan in 2018 in comparison to the year before.

Despite warnings from everyone in the finance sector about Britain heading into a debt hole and advising against getting into spiralling debt, it appears that Britons have decided that taking on more credit is the only way that they can get through day-to-day. 

It's an awful situation. We have run regular blog posts about how piling debt on top of debt is never the answer, but these figures suggest that this is genuinely the only way a lot of people can get through life at the moment.

Over 4 and a half million high-cost loans were taken out in 2016, but this rose significantly to well over 5 million last summer.

Statistics highlight that it is the youngest in our society that is in need the most. Nearly 40 per cent of the people that applied for a fast loan were in the 24-33 age category.

People applying for same-day loans is a growing trend and shows how our society is failing to grasp the enormity of the money problems people are facing.

The rising cost of living alongside sluggish wage growth has meant that people have no option but to take on more credit. Only a change in the economic and social tide will help these people, and that shows no sign of coming about any time soon.

All people can do is refrain, wherever possible, from entering into any other credit option while ever there are still debts to pay. We can appreciate that it's easier said than done, but it really is the only option. People should be honest about the problems that they are faced with and should seek help so that options can be opened to them that may help ease the pressure. 

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