Payday loan applications level off

Thu, 19 Feb 2009

British households are slowly coming to terms with the economic downturn, it has been claimed.

Research by moneysupermarket.com has found that the number of applications for payday loans has levelled out in the last six months, following a rapid rise.

According to Tim Moss, head of loans at the price comparison website, this shows that people are better able to cope with their financial situation.

"We saw an explosion of payday loans from January 2008 onwards with more and more people using all of their income on essentials - but still not being able to get through to the end of the month," he said.

However, falling inflation and dropping mortgage rates mean that people are now better able to cope and do not need to take out a pay loan, Mr Moss added.

When the number of people applying for payday loans actually starts to drop it will be a sign that the economy has started to recover, he stated.

Recently, Sainsbury's Finance revealed that the economic downturn has led to more people taking out personal loans to fund home improvement projects as they are unable to move house .
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Income Protection Insurance
Get an instant quote with the award winning company

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form