Payday loan demand wanes but still 'worryingly high’ among young

Payday loan demand wanes but still 'worryingly high’ among young, The insolvency trade body R3 found that 7pc of UK adults were planning to take out a payday loan in the next six months, compared with 11pc in October 2012. However, this figure rose to a “worringly high” 17pc among 18-34 year olds.The survey of more than 2,000 UK adults also found that half were worried about their current levels of debt, up from 42pc in February.R3 president Liz Bingham said: “Negative publicity about the risks of payday loans may be starting to affect their popularity. However, payday and other short-term loans remain a significant financial crutch for younger age groups. The demand for payday loans among young adults is worryingly high.”The report comes less than two weeks after the Office of Fair Trading referred the £2bn payday industry to the Competition Commission after uncovering “deep-rooted” problems with the industry.Stella Creasy, Labour MP and payday critic, told The Daily Telegraph: “The British public is waking up to the problems payday loans cause.People are desperately trying to avoid payday loans but how long can they hold off given the pressure they are under? We have got to cap the cost of credit, anything else is fiddling while Rome burns.”Russell Hamblin-Boone, Chief Executive of the Consumer Finance Association, which represents the major short-term lenders operating in the UK, said: "Both lenders and borrowers have to behave responsibly to ensure consumers do not end up with debt they cannot afford."CFA members are committed to raising standards by working with the regulator, government, debt charities and consumer groups to protect consumers and promote good practice in order to drive out rogue lenders."
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Payday loan demand wanes but still 'worryingly high’ among young Images