An estimated one million people in the U.K. payday loans
San Francisco, CA -- (SBWIRE) -- 09/27/2012 -- Santander has released new research that shows over one million people in the United Kingdom admit that they use payday loans on a regular basis to cover monthly expenses and bills. These loans they say help them cover any gaps in the month where they do not have the funds to cover household bills and expenses.
It is well known that most payday loans are expensive and charge absorbanent amounts of interest to borrowers if the full amount borrowed is not paid in full within a very short timeframe. Despite high interest, people continue to utilize the programs because it is the only way to avoid overdraft fees at their banks.
As people struggle to pay their monthly bills and support their families, payday loans are just the start. Research also shows that many families in the U.K. are also using other forms of credit to get by. Some use credit cards or other types of loans to make ends meat, as savings and other accounts have already been exhausted. For many, the only way to get by is to supplement by borrowing funds from other sources.
Rather than using overdraft services from a bank, which often charges interest, people are looking for something to help them get by until their next payday. Many are in serach of loans that are as low interest as possible. This also includes using credit cards that offer interest-free periods to users. Santander also found that people used credit and loans more often than they sought to find better deals on “utilities, television or broadband subscriptions.” Which could save them money on a monthly basis.
Research showed that the most popular method of borrowing money was by bank overdraft, followed by credit cards and then payday loans. As the cost of living goes up for many people, the use of loans to make ends meet may become commonplace.
NorthStarAdvance.Com (http://northstaradvance.com/) is an onlne loan solution for consumers looking for an option to help pay bills. North Star Advance is an installment loan service which is an attractive option compared to payday loans. Installment loans offer longer payback terms, lower APR percentages and can sometimes offer higher money than a traditional payday loan.
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