Short-term credit created by Payday Loan companies becomes a danger when it's used by people who don't understand the costs surrounding Payday loans and, especially, those who don't know how they are going to pay their payday loan back.
More people than ever are getting into trouble after taking out a payday loan without and consideration as to how and when they might be able to pay back the payday advance — these payday loans can often charge in the region of 4,000 per cent APR from certain payday lenders.
Payday loans are intended as a short-term stop gap to tide people over for a few days or weeks until payday. The fact that most payday lenders have no credit scoring and don't share data about their payday loans means it's easy for someone to take a payday loan at several times over what they can afford
A charity set up to tackle payday loans reported 16,500 people approach it this year with problems linked to payday loan debt – with more than 2,000 of them struggling with five of these payday loans or more. In addition, The Consumer Credit Counselling Service (CCCS) said it was on course to see a record number of people who were experiencing troubles with Payday Loans this year, having assisted almost 17,500 clients last year and just under 6,500 in 2009.
The Payday loan industry has been thrust back in the spotlight recently partly due to payday lender Wonga's aquistition of Newcastle United at a cost of millions – so that's where all those payday loans have gone to!Wonga signed a four-year sponsorship deal with the Premiership Club drawing mixed reaction from fans and yet to be known reaction from Wonga's payday loan customers!
PayDay Loans http://www.cash-