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Payday Loan Use on the Rise

With the skyrocketing cost of basic commodities like fuel and food, the squeeze on the average consumer has given way to a rise in payday loans as a source of emergency funding, according to a recent survey by a price comparison site, Moneysupermarket.

This isn’t entirely surprising, given that there are a number of people living paycheck to paycheck already. Payday loans are often a source of debate in terms of merit given that the APR’s (Annual Percentage Rates) on said loans are typically very steep. Like anything else, there are some benefits to such services, such as ease of obtaining the loan in an emergency situation (One such site offers Faxless Payday Loans) Tim Moss, head of the price comparison site, did cite some benefits to a payday loan service:

“As disposable income is being squeezed through increases in the cost of food, fuel, utilities and general living necessities, these loans are increasingly used to help those on a tight budget. They are a bit like a taxi – convenient for short-term journeys,” he said.

As usual, take great caution if ever considering the use of a payday loan service and utilize it as a loan of last resort. with an emergency fund coming first.

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