People From The UK Are Most Vulnerable To Payday Loans
Life can be tough; many of us had to work multiple jobs to ensure we augment our family’s daily needs. With the economic meltdown in the UK not helping at all, more and more people are finding themselves turning to payday loans for quick cash loans. But, why are more and more Londoners falling prey to this loan arrangements when it is sure to hurt their finances instead of do them any good?
There are various reasons why more and more Londoners are fast becoming prone to payday loans. Many claim that it’s fast and no-questions-asked policy make it the best option for those who are cash-strapped and wants money fast without having the need to provide financial documents to prove their financial capacity. London is an expensive city to live in, with lifestyle that is so high-maintenance, there is no wonder why too many people from the place are lured to the quick cash promises of payday loans. Londoners are walking in the tightrope of financial crisis and the chances of doom are rather high.
At the bottom of the pile, you will find payday loans. Debt accumulation has become a habit for many Londoners who succumb to these fast remedies as it is ‘fast,’ and they can buy all they want with it. Now, debt is seen as a problem or an in-depth social ill. And why? Simple, even the London government sets a bad precedent. The gross national debt peaked to over 90% of annual GDP and according to estimates by the IMF or International Monetary Fund, it will surely balloon at a pre-crisis level. This is a record high for London.
Why Londoners Are 60% More Vulnerable To Payday Loans?
It is a known fact that life is expensive in London that in any place in the planet. But, this has not prevented its citizens from living frugal lives or to even stop splurging. Londoners are very prone to take out their credit card or use payday loan to pay for a funeral and other emergency medical expenses.
Can you guess how much Londoners get into heavy debts just so they can cover unexpected expenses when their plates are already full? 10%? 15%? Not quite. A massive 40% of those who have been surveyed confessed that they had to take a payday loan or credit card with 39% interest rates to pay for their unexpected expenses.
With interest rates soaring to up to 22% more over the years, now it is high time to take the future more seriously.
With 80% of the UK adult population not having any contingency plans when the worst case scenario happens, they end up being caught unprepared, and payday loans are always by their side to offer quick cash loans. It’s very easy to get money and be buried in payday debts. It’s so handy and very hassle-free, and so the cycle goes on, and on, and on…BUT
The flip side to this is that there are thousands who have been able to rely on payday loans for emergency assistance. Payday loans are easy to obtain and can be used for health emergencies, accidents, or unforeseen expenditures such as an immediate trip. People who have no credit cards find payday loans convenient and easy since it doesn’t ask for collateral or require a lot of documents.
So in the end, being in debt is pretty much like everything else in life. It’s how you deal with it that counts.