A debt centre manager has voiced concern over the potential dangers of taking out a pricey payday loan.
Owen Cooper of the Hemel Hempstead branch of Christians Against Poverty (CAP), said: “Although I haven’t seen a massive increase in the number of cases involving payday loans recently, I can see it becoming a problem in the future.”
Many families are struggling to cope with the sharp rise in utility bills and council tax, meaning payday loans seem an appealing option.
But they are being crippled by extortionate interest rates and incur extra charges when they fail to repay the full amount at the end of the month.
Owen said: “We don’t think anyone should be taking out payday loans.
“If anyone is considering doing so, we see this as a sign that they need help with their money first.
“We’re here to help people out of debt. In our eyes, any loan is bad.”
For more information, visit www.capuk.org.