Wednesday, 7 December 2011

R3 report on Payday Loans

Insolvency trade body R3 has today released a report into payday loans, featured on the Today Programme (clip).
Key findings include:
  • 3.5 million adults are considering taking out a payday loan over the next six months
  • Of those sampled who took out a payday loan, 60% regret the decision and 48% believe the loan has made their financial situation worse
  • Only 13% believe their payday loan had a positive impact on their finances
  • One in six UK adults are only able to pay the interest on their debt rather than paying off the debt itself, so-called ‘zombies’
  • The highest ever levels of concern over debt were recorded this quarter - 60% of individuals are worried about their debt levels