According to report published by, The Business, Innovation and Skills Committee (NASDAQ:BIS) has suggested that the Brits are getting more and more anxious about their debt levels.
The debt management report reveals the fact that, 60 percent of individual were worried about their debt situation or size of debts. This figure is highest recorded figure ever.
Today there are many debt management companies, a place where debt ridden families can share their problem and arrive at solution. Numerous people are taking payday loans to arrive at life solution. But these services are not absolutely free. Most of the people feel disadvantaged because of high interest rates. The core of our problem is controversial pay day loan. It has become a prompt choice for all youngsters who are unable to earn enough.
These figures from Consumer Focus really pent up pressure among individuals. The figure highlighted the fact that payday loan market is rapidly expanding. It has expanded from 0.3 million borrowers in 2006 to 1.2 million borrowers in 2009. In 2010 the figure escalated to 1.9 million and will continue to grow.
In present times debts are putting undue pressure among youngsters later manifesting as psychological problems. Brits are using payday loans not only to cover their day to day expenses, but they are also using this amount to cover a mortgage and rental payments.
Sarah Brooks, Director of Financial Services remarked that Pay Day Loan Industry is suffering from setback because of irresponsible lending. Moreover, consumers with low income feel disadvantaged.
Martin Lewis from consumer website, Money Saving Expert acclaims the fact that there is no regulation in payday loan market. He has described it as the only Wild West for payday lenders. He also described these payday loans as a crock of gold at the end of the rainbow.
These loans are generally taken by youngsters who need some quick bucks to cover financial troubles.
The commonality of problems opened the opportunities for this debt management companies. Credit Card is a viable option for all those who want instant credit. These companies provide holistic approach to debt management problem.