With the current economy crisis more and more Brits are taking out payday loans, the number of loans being taken out has risen by a hefty 40 per cent in just 6 months. Many blame the need for these loans on the prices of food and fuel.

A payday loan shop manager who did not wish to be named commented that the majority of payday loan providers offer a maximum term of 30 days and interest of around 25%.

With the upcoming festive season many people see the need for a payday loan as crucial, due to tight lending criteria’s many can’t borrow from banks, building societies or get a credit card. Those unable to repay the loan after 30 days could face serious financial strain.

All this means a major headache for the UK government as they worry all this borrowing will result in a January debt nightmare. A government spokesman commented we are slowly correcting the economy crisis but at this time of year people feel pressured to spend money on food, drink and presents usually money they simply do not have, this worries the government hugely. We want to strongly encourage people to stick to a budget and not to overspend.