In the current climate, with a sharp rise in inflation and the cost of living and wages frozen or fallen, many people have seen their finances make a real success, with many now find they are unable to stretch them enough to cover all their expenses. A recent report highlighted as a growing number of workers were now is increasingly difficult to do at end of month and therefore they were going to friends and family, as well as the lenders to obtain money to stay afloat financially from a payment to the next day.
However, consumers are now being warned that if they get a pay day loan to bridge the gap of a day of payment to the next they need to ensure that return the money on time otherwise could face charges of considerable interest. The year past more than two million people say they have used the services of pay day loans, with many being tempted by the speed at which can borrow without credit and controls the ability to borrow sums relatively small at a fixed rate.
However, the idea behind these loans is paid back quickly so that borrowers avoid heavy taxes and revenues but borrowers are too often in a position where that can not repay the loan on time, which is where the charges and fees begin to kick, hit the cost of the loan even more.
Industry experts said: "there is a real danger that the customers could fall into a spiral of debt where they have to take out a loan every month just to make ends meet." "The golden rule is to not borrow money unless absolutely necessary."