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Serious risk when Brits take out payday loans

By Sarah Engle, Tue 5 Jul 2011 - Published in Loans

There is a serious risk when taking out payday loans, according to Candidmoney.com.

The financial website noted that many people are taking out this credit in order to get cash quickly, but they are turning a blind eye to the risks associated with it.

On top of this, the company added that lots of Brits do not understand the costs that can be incurred when they take out one of these loans.

Justin Modray, from Candidmoney.com, said: "Typical payday loans charge interest of around 2,000 per cent or more. This is nothing short of legalised robbery."

Mr Modray added that it is imperative people pay these loans back as soon as they can.

Recently, statistics from Credit Action revealed that the average household debt in the UK including mortgages was £55,862 during June.

The report also found that the average amount owed by every British adult is £29,839 and that £178 million is paid in personal interest every day across the country.